INNOVATE (VATE) 10-K 2011 FY Annual report

Exhibit 12.1

Computation of Ratio of Earnings to Fixed Charges

(in thousands)

	Predecessor								Successor
	Year Ended December 31,					Six  Months Ended July 1, 2009			Six  Months Ended December 31, 2009		Year Ended December 31,
	2007		2008								2010			2011
Earnings:
Pre-tax income (loss) from continuing operations before adjustment for income (loss) of equity investees	$	14,644	$	(16,186	)	$	457,761		$	1,259	$	(20,402	)	$	(27,200	)
Add: Fixed Charges		67,120		59,664			16,618			20,528		42,493			40,591
Add: Distributed income of equity investees		—		—			—			—		—			—
Less: Equity investment		—		—			—			—		—			—
Total earnings before fixed charges	$	81,764	$	43,478		$	474,379		$	21,787	$	22,091		$	13,391
Fixed charges:
Interest expense	$	60,706	$	53,861		$	14,072		$	17,255	$	35,441		$	32,506
Accretion (amortization) on debt discount/premium, net		449		(583	)		(189	)		3		183			213
Estimated interest component of rent expense		5,965		6,386			2,735			3,270		6,869			7,872
Total fixed charges	$	67,120	$	59,664		$	16,618		$	20,528	$	42,493		$	40,591
Ratio of earnings to fixed charges(1)		1.22		<1			28.55			1.06		<1			<1

(1) The ratio of earnings to fixed charges is computed by dividing the sum of pre-tax income from continuing operations (before adjustment for minority interests in consolidated subsidiaries and loss from equity investees) plus fixed charges, by fixed charges. Fixed charges consist of interest charges, whether expensed or capitalized, and that portion of rental expense we believe to be representative of interest.