Attached files
file | filename |
---|---|
10-Q - 10-Q - NCO Group, Inc. | a11-9477_110q.htm |
EX-32.2 - EX-32.2 - NCO Group, Inc. | a11-9477_1ex32d2.htm |
EX-31.2 - EX-31.2 - NCO Group, Inc. | a11-9477_1ex31d2.htm |
EX-31.1 - EX-31.1 - NCO Group, Inc. | a11-9477_1ex31d1.htm |
EX-32.1 - EX-32.1 - NCO Group, Inc. | a11-9477_1ex32d1.htm |
Exhibit 12
NCO Group, Inc.
Ratio of Earnings to Fixed Charges
(in thousands, except for ratios)
|
|
For the Three Months Ended |
| ||||
|
|
March 31, |
| ||||
|
|
2011(1)(2) |
|
2010(1)(3) |
| ||
Earnings: |
|
|
|
|
| ||
Add: |
|
|
|
|
| ||
Loss before income taxes and noncontrolling interest |
|
$ |
(41,396 |
) |
$ |
(11,298 |
) |
Fixed charges |
|
27,360 |
|
29,540 |
| ||
|
|
(14,036 |
) |
18,242 |
| ||
Subtract: |
|
|
|
|
| ||
Interest capitalized |
|
99 |
|
|
| ||
Distributions to noncontrolling interest holders |
|
883 |
|
1,264 |
| ||
|
|
982 |
|
1,264 |
| ||
Earnings |
|
$ |
(15,018 |
) |
$ |
16,978 |
|
|
|
|
|
|
| ||
Fixed Charges: |
|
|
|
|
| ||
Interest expense |
|
$ |
21,828 |
|
$ |
23,601 |
|
Interest capitalized |
|
99 |
|
|
| ||
Portion of rentals deemed to be interest |
|
5,433 |
|
5,939 |
| ||
|
|
$ |
27,360 |
|
$ |
29,540 |
|
|
|
|
|
|
| ||
Ratio of earnings to fixed charges |
|
(0.5 |
)x |
0.6 |
x |
(1) |
For the three months ended March 31, 2011 and 2010, the Companys ratio of earnings to fixed charges indicated a less than one-to-one coverage. The deficiency was a result of earnings that were $42.4 million and $12.6 million, respectively, less than fixed charges. |
(2) |
Loss before income taxes and noncontrolling interest included restructuring charges of $12.2 million and an $18.6 write-down of the value of certain portfolios of purchased accounts receivable. |
(3) |
Loss before income taxes and noncontrolling interest included restructuring charges of $1.4 million. |