Exhibit 12.1
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
EPIQ SYSTEMS, INC.
(In Thousands, except for Ratio)
|
| Year Ended December 31, |
| |||||||
|
| 2006 |
| 2005 |
| 2004 |
| |||
Earnings (Loss) |
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|
|
|
|
|
| |||
income (loss) from continuing operations |
| $ | 35,131 |
| $ | (3,842 | ) | $ | (7,290 | ) |
tax expense (benefit) related to continuing operations |
| 22,834 |
| (2,400 | ) | (4,313 | ) | |||
pre-tax earnings (loss) |
| 57,965 |
| (6,242 | ) | 11,603 | ) | |||
Plus |
|
|
|
|
|
|
| |||
fixed charges |
| 15,349 |
| 7,676 |
| 7,176 |
| |||
amortization of capitalized interest |
| — |
| — |
| — |
| |||
distributed income - equity investees |
| — |
| — |
| — |
| |||
share of pre-tax losses of equity investees |
| — |
| — |
| — |
| |||
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|
|
|
|
|
| |||
Less |
|
|
|
|
|
|
| |||
capitalized interest |
| — |
| — |
| — |
| |||
preference dividends of consolidated subs |
| — |
| — |
| — |
| |||
minority interest in subs pre-tax income |
| — |
| — |
| — |
| |||
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Total Earnings (Loss) |
| 73,314 |
| 1,434 |
| (4,427 | ) | |||
|
|
|
|
|
|
|
| |||
Fixed Charges |
|
|
|
|
|
|
| |||
Interest expensed |
| 12,023 |
| 5,662 |
| 4,223 |
| |||
Interest capitalized |
| — |
| — |
| — |
| |||
amortized deferred loan charges |
| 1,445 |
| 1,147 |
| 2,120 |
| |||
estimated interest expense in leases |
| 1,881 |
| 867 |
| 833 |
| |||
preference dividends of consolidated subs |
| — |
| — |
| — |
| |||
Total Fixed Charges |
| 15,349 |
| 7,676 |
| 7,176 |
| |||
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|
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Ratio of earnings to fixed charges |
| 4.8 |
| 0.2 |
| n/a |
| |||
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.