Attached files
Exhibit 12.1
NATIONAL FINANCIAL PARTNERS CORP.
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED DIVIDENDS
(Amounts in thousands of dollars, except ratios)
For the years ended December 31, | ||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
(Loss) income before income taxes (a) |
$ | 69,039 | $ | (567,770 | ) | $ | 41,809 | $ | 91,956 | $ | 101,361 | |||||||||
Add: |
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Interest Expense(a) |
$ | 15,662 | $ | 18,187 | $ | 19,832 | $ | 16,587 | $ | 6,291 | ||||||||||
Amortization of debt-related expenses |
2,871 | 2,380 | 1,932 | 1,723 | 559 | |||||||||||||||
Appropriate portion of rents(b) |
7,019 | 9,297 | 7,306 | 5,400 | 4,280 | |||||||||||||||
25,552 | 29,864 | 29,070 | 23,710 | 11,130 | ||||||||||||||||
Earnings available for fixed charges |
$ | 94,591 | $ | (537,906 | ) | $ | 70,879 | $ | 115,666 | $ | 112,491 | |||||||||
Fixed Charges: |
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Interest Expense(a) |
$ | 15,662 | $ | 18,187 | $ | 19,832 | $ | 16,587 | $ | 6,291 | ||||||||||
Amortization of debt-related expenses |
2,871 | 2,380 | 1,932 | 1,723 | 559 | |||||||||||||||
Appropriate portion of rents(b) |
7,019 | 9,297 | 7,306 | 5,400 | 4,280 | |||||||||||||||
Total Fixed Charges |
$ | 25,552 | $ | 29,864 | $ | 29,070 | $ | 23,710 | $ | 11,130 | ||||||||||
Ratio of Earnings to Combined Fixed Charges and Preferred Dividends(c)(d) |
3.70 | x | N/M | 2.44 | x | 4.88 | x | 10.11 | x |
N/M indicates not meaningful
(a) | Interest expense and Income before income taxes exclude interest expense accrued on uncertain tax positions. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense. As of December 31, 2010, the Company had accrued interest related to unrecognized tax benefits of $0.3 million. |
(b) | Portion of rental expenses which is deemed representative of an interest factor, which is approximately twenty percent of total rental expense. |
(c) | Dividends paid on preference securities issued would be included as fixed charges and therefore impact the ratio of earnings to fixed charges. As of the date of this report, the Company has not issued any shares of the Companys preferred stock. |
(d) | Earnings for the year ended December 31, 2009 were inadequate to cover fixed charges and earnings available for fixed charges must be approximately $29.9 million in order to attain a ratio of earnings to combined fixed charges and preferred dividends of one-to-one. |