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COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
EPIQ SYSTEMS, INC.
(In Thousands, except for Ratio)
| Year Ended December 31, | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2007 | 2006 | 2005 | |||||||||
Earnings (Loss) | ||||||||||||
income (loss) | $ | 6,929 | $ | 35,131 | $ | (3,842 | ) | |||||
tax expense (benefit) | 4,066 | 22,834 | (2,400 | ) | ||||||||
pre-tax earnings (loss) | 10,995 | 57,965 | (6,242 | ) | ||||||||
Plus | ||||||||||||
fixed charges | 13,882 | 15,349 | 7,676 | |||||||||
amortization of capitalized interest | — | — | — | |||||||||
distributed income—equity investees | — | — | — | |||||||||
share of pre-tax losses of equity investees | — | — | — | |||||||||
Less | ||||||||||||
capitalized interest | — | — | — | |||||||||
preference dividends of consolidated subs | — | — | — | |||||||||
minority interest in subs pre-tax income | — | — | — | |||||||||
Total Earnings | 24,877 | 73,314 | 1,434 | |||||||||
Fixed Charges | ||||||||||||
Interest expensed | 10,980 | 12,023 | 5,662 | |||||||||
Interest capitalized | — | — | — | |||||||||
amortized deferred loan charges | 993 | 1,445 | 1,147 | |||||||||
estimated interest expense in leases | 1,909 | 1,881 | 867 | |||||||||
preference dividends of consolidated subs | — | — | — | |||||||||
Total Fixed Charges | 13,882 | 15,349 | 7,676 | |||||||||
Ratio of earnings to fixed charges | 1.8 | 4.8 | 0.2 | |||||||||
For the year ended December 31, 2005, our earnings to fixed charges ratio was less than one to one coverage. The amount of such deficiency was $6,242.
Interest included in fixed charges includes only interest on third party indebtedness and, accordingly, we have excluded accrued interest expense related to uncertain tax positions.