Exhibit 12
NCO Group, Inc.
Ratio of Earnings to Fixed Charges
(in thousands, except for ratios)
|
| For the Three Months Ended |
| ||||
|
| March 31, |
| ||||
|
| 2010(1)(2) |
| 2009(1)(3) |
| ||
Earnings: |
|
|
|
|
| ||
Add: |
|
|
|
|
| ||
Loss before income taxes and noncontrolling interest |
| $ | (11,298 | ) | $ | (3,825 | ) |
Fixed charges |
| 29,540 |
| 28,688 |
| ||
Amortization of capitalized interest |
| — |
| 3 |
| ||
|
| 18,242 |
| 24,866 |
| ||
Subtract: |
|
|
|
|
| ||
Distributions to noncontrolling interest holders |
| 1,264 |
| 2,317 |
| ||
|
| 1,264 |
| 2,317 |
| ||
Earnings |
| $ | 16,978 |
| $ | 22,549 |
|
|
|
|
|
|
| ||
Fixed Charges: |
|
|
|
|
| ||
Interest expense |
| $ | 23,601 |
| $ | 23,110 |
|
Portion of rentals deemed to be interest |
| 5,939 |
| 5,578 |
| ||
|
| $ | 29,540 |
| $ | 28,688 |
|
|
|
|
|
|
| ||
Ratio of earnings to fixed charges |
| 0.6 | x | 0.8 | x | ||
(1) | For the three months ended March 31, 2010 and 2009, the Company’s ratio of earnings to fixed charges indicated a less than one-to-one coverage. The deficiency was a result of earnings that were $12.6 million and $6.1 million, respectively, less than fixed charges. |
(2) | Loss before income taxes and noncontrolling interest includes restructuring charges of $1.4 million. |
(3) | Loss before income taxes and noncontrolling interest includes restructuring charges of $443,000. |