Exhibit 12
NCO Group, Inc.
Ratio of Earnings to Fixed Charges
(in thousands, except for ratios)
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
Earnings: | ||||||||||||||||
Add: | ||||||||||||||||
(Loss) income before income taxes and minority interest | $ | (46,272 | ) | $ | (6,313 | ) | $ | (85,023 | ) | $ | (8,920 | ) | ||||
Fixed charges | 30,791 | 27,562 | 87,048 | 80,073 | ||||||||||||
Amortization of capitalized interest | 3 | 3 | 9 | 8 | ||||||||||||
| (15,478 | ) | 21,252 | 2,034 | 71,161 | ||||||||||||
Subtract: | ||||||||||||||||
Interest capitalized | — | — | 25 | — | ||||||||||||
Distributions to minority holders | 3,603 | 1,488 | 9,234 | 5,480 | ||||||||||||
| 3,603 | 1,488 | 9,259 | 5,480 | |||||||||||||
Earnings | $ | (19,081 | ) | $ | 19,764 | $ | (7,225 | ) | $ | 65,681 | ||||||
Fixed Charges: | ||||||||||||||||
Interest expense | $ | 24,982 | $ | 24,551 | $ | 70,392 | $ | 70,867 | ||||||||
Interest capitalized | — | — | 25 | — | ||||||||||||
Portion of rentals deemed to be interest | 5,809 | 3,011 | 16,631 | 9,206 | ||||||||||||
| $ | 30,791 | $ | 27,562 | $ | 87,048 | $ | 80,073 | |||||||||
Ratio of earnings to fixed charges | (0.6 | )x | 0.7 | x | (0.1 | )x | 0.8 | x | ||||||||
