Exhibit 12.1
NII HOLDINGS, INC.
STATEMENT REGARDING COMPUTATION OF RATIO OF EARNINGS
TO FIXED CHARGES
(dollars in thousands)
Year Ended | Ten Months Ended | Two Months Ended | Year Ended | |||||||||||||||||||||
December 31, | October 31, | December 31, | December 31, | |||||||||||||||||||||
2000 | 2001 | 2002 | 2002 | 2003 | 2004 | |||||||||||||||||||
(Loss) income from continuing operations before income tax | $ | (290,122 | ) | $ | (2,378,590 | ) | $ | 1,986,590 | $ | 27,973 | 132,841 | 135,510 | ||||||||||||
Add: | ||||||||||||||||||||||||
Fixed charges | 333,031 | 352,216 | 170,435 | 13,302 | 85,897 | 74,665 | ||||||||||||||||||
Amortization of capitalized interest | 7,313 | 12,654 | 3,716 | 743 | 6,779 | 7,179 | ||||||||||||||||||
Less: | ||||||||||||||||||||||||
Interest capitalized | 26,513 | 42,927 | 8,239 | 971 | 6,825 | 2,598 | ||||||||||||||||||
Equity in (losses) gains of unconsolidated affiliates | (33,328 | ) | 9,640 | — | — | — | — | |||||||||||||||||
Losses attributable to minority interests | 6,504 | — | — | — | — | — | ||||||||||||||||||
Earnings as adjusted | $ | 50,533 | $ | (2,066,287 | ) | $ | 2,152,502 | $ | 41,047 | $ | 218,692 | $ | 214,755 | |||||||||||
Preferred stock dividends: | 61,334 | — | — | — | — | — | ||||||||||||||||||
Effective income tax (benefit) provision rate | 100 | % | — | — | — | — | — | |||||||||||||||||
Preferred stock dividends on pretax basis | 61,334 | — | — | — | — | — | ||||||||||||||||||
Fixed charges: | ||||||||||||||||||||||||
Interest expense on indebtedness (including amortization of debt expense and discount) | $ | 237,743 | $ | 297,228 | $ | 151,579 | $ | 10,469 | 64,623 | 55,113 | ||||||||||||||
Interest capitalized | 26,513 | 42,927 | 8,239 | 971 | 6,825 | 2,598 | ||||||||||||||||||
Portion of rent expense representative of interest (30%) | 7,441 | 12,061 | 10,617 | 1,862 | 14,449 | 16,954 | ||||||||||||||||||
Fixed charges | $ | 333,031 | $ | 352,216 | $ | 170,435 | $ | 13,302 | $ | 85,897 | $ | 74,665 | ||||||||||||
Ratio of earnings to fixed charges | 0.15 | (5.87 | ) | 12.63 | 3.09 | 2.55 | 2.88 | |||||||||||||||||
Deficiency of earnings to cover fixed charges | $ | — | $ | 2,418,503 | $ | — | $ | — | $ | — | $ | — | ||||||||||||