Exhibit 12.1
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
EPIQ SYSTEMS, INC.
(In Thousands, except for Ratio)
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| Six months |
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| ended |
| Year Ended December 31, |
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| June 30, 2012 |
| 2011 |
| 2010 |
| 2009 |
| 2008 |
| 2007 |
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Earnings |
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Net income |
| $ | 7,196 |
| $ | 12,080 |
| $ | 13,929 |
| $ | 14,595 |
| $ | 13,836 |
| $ | 6,929 |
|
Income tax expense |
| 4,255 |
| 8,827 |
| 12,641 |
| 12,266 |
| 10,507 |
| 4,066 |
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Fixed charges |
| 7,417 |
| 9,651 |
| 5,335 |
| 4,023 |
| 3,505 |
| 13,882 |
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Earnings available for fixed charges |
| 18,868 |
| 30,558 |
| 31,905 |
| 30,884 |
| 27,848 |
| 24,877 |
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Fixed Charges |
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Interest expense * |
| 5,081 |
| 5,204 |
| 1,537 |
| 1,160 |
| 1,331 |
| 10,980 |
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Amortization of deferred loan charges |
| 358 |
| 640 |
| 393 |
| 314 |
| 426 |
| 993 |
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Estimated interest expense in leases |
| 1,978 |
| 3,807 |
| 3,405 |
| 2,549 |
| 1,748 |
| 1,909 |
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Total fixed charges |
| $ | 7,417 |
| $ | 9,651 |
| $ | 5,335 |
| $ | 4,023 |
| $ | 3,505 |
| $ | 13,882 |
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Ratio of Earnings to Fixed Charges |
| 2.5 |
| 3.2 |
| 6.0 |
| 7.7 |
| 7.9 |
| 1.8 |
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* Interest included in fixed charges includes only interest on third party indebtedness and, accordingly, we have excluded interest expense related to uncertain tax positions which is included in income tax expense shown above.