Attached files
Exhibit 12.1
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
The following table presents our earnings to fixed charges for the periods indicated:
Year Ended December 31, | ||||||||||||||||||||
2006 | 2007 | 2008 | 2009 | 2010 | ||||||||||||||||
Earnings: |
||||||||||||||||||||
Income (loss) from continuing operations before taxes (a) |
$ | 36,373 | $ | 1,545 | $ | 108,351 | $ | (43,262 | ) | $ | (120,413 | ) | ||||||||
Interest expense (b) |
29,909 | 44,596 | 42,533 | 44,699 | 59,870 | |||||||||||||||
Amortization of deferred financing costs and bond discount |
3,913 | 3,705 | 2,507 | 2,386 | 4,338 | |||||||||||||||
Preference securities dividends requirements |
6,736 | 878 | | | | |||||||||||||||
Less: Preference securities dividends requirements |
(6,736 | ) | (878 | ) | | | | |||||||||||||
Total earnings |
$ | 70,195 | $ | 49,846 | $ | 153,391 | $ | 3,823 | $ | (56,205 | ) | |||||||||
Fixed charges: |
||||||||||||||||||||
Interest expense (b) |
$ | 29,909 | $ | 44,596 | $ | 42,533 | $ | 44,699 | 59,870 | |||||||||||
Amortization of deferred financing costs and bond discount |
3,913 | 3,705 | 2,507 | 2,386 | 4,338 | |||||||||||||||
Interest element on rent expense (c) |
733 | 810 | 1,011 | 1,245 | 1,277 | |||||||||||||||
Preference securities dividends requirements (d) |
6,736 | 878 | | | | |||||||||||||||
Total fixed charges |
$ | 41,291 | $ | 49,989 | $ | 46,051 | $ | 48,330 | $ | 65,485 | ||||||||||
Ratio of earnings to fixed charges (e) |
1.70 | 1.00 | 3.33 | | | |||||||||||||||
(a) | For the year ended December 31, 2010, income (loss) from continuing operations before taxes includes a non-cash goodwill impairment charge of $62.8 million. |
(b) | For the year ended December 31, 2009, interest expense includes a non-recurring non-cash charge of $7.5 million associated with a deferred loss recognized on interest rate derivatives for which previously hedged cash flows no longer exists as a result of the repayment of the first and second lien term loans on December 23, 2009. |
(c) | Interest on operating leases estimated to be 33% of annual rental expense. |
(d) | Preferred partnership unit interest and dividend requirement grossed up for income taxes in deriving the pre-tax income required to pay dividends through May 11, 2007, the cancellation date of the preferred partnership units. |
(e) | For the years ended December 31, 2009 and 2010, earnings were insufficient by $44.5 million and $121.7 million, respectively, to cover fixed charges. |