Computation of Ratio of EBITDA to interest expense
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| For the Years Ended December 31, |
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| 2006 |
| 2005 |
| 2004 |
| 2003 |
| 2002 |
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EBITDA(1): |
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Net income |
| $374,827 |
| $ | 287,913 |
| $ | 260,447 |
| $ | 292,157 |
| $ | 215,270 |
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Add: Interest expense(2) |
| 429,807 |
| 313,053 |
| 232,918 |
| 194,999 |
| 185,362 |
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Add: Depreciation, depletion and amortization(3) |
| 83,058 |
| 75,574 |
| 67,853 |
| 55,905 |
| 48,041 |
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Add: Joint venture depreciation, depletion and amortization |
| 14,941 |
| 8,284 |
| 3,544 |
| 7,417 |
| 4,433 |
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Total EBITDA |
| $902,633 |
| $684,824 |
| $564,762 |
| $550,478 |
| $453,106 |
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Interest expense |
| $429,807 |
| $ | 313,053 |
| $ | 232,918 |
| $ | 194,999 |
| $ | 185,362 |
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EBITDA/Interest expense(4) |
| 2.1x |
| 2.2x |
| 2.4x |
| 2.8x |
| 2.4x |
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Explanatory Notes:
(1) EBITDA should be examined in conjunction with net income as shown in the Company’s Consolidated Statements of Operations. EBITDA should not be considered as an alternative to net income (determined in accordance with GAAP) as an indicator of the Company’s performance, or to cash flows from operating activities (determined in accordance with GAAP) as a measure of the Company’s liquidity, nor is EBITDA a measure indicative of funds available to fund the Company’s cash needs or available for distribution to shareholders. Rather, it is an additional measure for the Company to use to analyze how its business is performing.
(2) For the years ended December 31, 2006, 2005, 2004, 2003 and 2002, interest expense includes $0, $0, $190, $337 and $348, respectively, of interest expense reclassified to discontinued operations.
(3) For the years ended December 31, 2006, 2005, 2004, 2003 and 2002, depreciation, depletion and amortization includes $1,858, $2,628, $6,658, $8,002 and $7,927, respectively, of depreciation and amortization reclassified to discontinued operations.
(4) The ratio for 2004 gives effect to the CEO, CFO and ACRE Partners compensation charges of $106.9 million, the 8.75% Senior Notes due 2008 redemption charges of $11.5 million and the preferred stock redemption charge of $9.0 million. Excluding these charges, the ratio of EBITDA/Interest expense would have been 2.9x.