Exhibit 12.1
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
EPIQ SYSTEMS, INC.
(In Thousands, except for Ratio)
|
| Year Ended December 31, |
| |||||||
Earnings (Loss) |
| 2005 |
| 2004 |
| 2003 |
| |||
income (loss) from continuing operations |
| $ | (3,842 | ) | $ | (7,290 | ) | $ | 9,595 |
|
tax expense (benefit) related to continuing operations |
| (2,400 | ) | (4,313 | ) | 6,939 |
| |||
pre-tax earnings (loss) |
| (6,242 | ) | (11,603 | ) | 16,534 |
| |||
Plus |
|
|
|
|
|
|
| |||
fixed charges |
| 7,676 |
| 7,176 |
| 550 |
| |||
amortization of capitalized interest |
| 0 |
| 0 |
| 0 |
| |||
distributed income — equity investees |
| 0 |
| 0 |
| 0 |
| |||
share of pre-tax losses of equity investees |
| 0 |
| 0 |
| 0 |
| |||
|
|
|
|
|
|
|
| |||
Less |
|
|
|
|
|
|
| |||
capitalized interest |
| 0 |
| 0 |
| 0 |
| |||
preference dividends of consolidated subs |
| 0 |
| 0 |
| 0 |
| |||
minority interest in subs pre-tax income |
| 0 |
| 0 |
| 0 |
| |||
|
|
|
|
|
|
|
| |||
Total Earnings (Loss) |
| 1,434 |
| (4,427 | ) | 17,084 |
| |||
|
|
|
|
|
|
|
| |||
Fixed Charges |
|
|
|
|
|
|
| |||
Interest expensed |
| 5,662 |
| 4,223 |
| 201 |
| |||
Interest capitalized |
| 0 |
| 0 |
| 0 |
| |||
amortized deferred loan charges |
| 1,147 |
| 2,120 |
| 0 |
| |||
estimated interest expense in leases |
| 867 |
| 833 |
| 349 |
| |||
preference dividends of consolidated subs |
| 0 |
| 0 |
| 0 |
| |||
Total Fixed Charges |
| 7,676 |
| 7,176 |
| 550 |
| |||
|
|
|
|
|
|
|
| |||
Ratio of earnings to fixed charges |
| 0.2 |
| n/a |
| 31.1 |
| |||
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.
For the year ended December 31, 2004, we had a total loss. Accordingly, our earnings to fixed charges ratio was less than one to one coverage. The amount of such deficiency was $11,603.