Exhibit 12.1
EXTERRAN HOLDINGS, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In thousands, except ratio amounts)
(unaudited)
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In thousands, except ratio amounts)
(unaudited)
Nine Months Ended | Years Ended December 31, | |||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||
2011 (1) | 2010 (2) | 2009 (3) | 2008 (4) | 2007 (5) | 2006 | |||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | (322,030 | ) | $ | (225,170 | ) | $ | (197,557 | ) | $ | (944,609 | ) | $ | (2,339 | ) | $ | 73,908 | |||||||
Equity (income) loss adjustment | 262 | 609 | 91,154 | (23,974 | ) | (12,498 | ) | (19,430 | ) | |||||||||||||||
Fixed charges | 134,456 | 167,218 | 147,570 | 141,750 | 138,805 | 129,477 | ||||||||||||||||||
Distributed income of equity interests | — | — | — | 3,305 | 8,516 | 17,599 | ||||||||||||||||||
Amortization of capitalized interest | 1,365 | 1,548 | 783 | 1,926 | 1,406 | 778 | ||||||||||||||||||
Capitalized interest | (1,151 | ) | (1,666 | ) | (4,529 | ) | (306 | ) | (1,346 | ) | (1,843 | ) | ||||||||||||
Total Earnings | $ | (187,098 | ) | $ | (57,461 | ) | $ | 37,421 | $ | (821,908 | ) | $ | 132,543 | $ | 200,489 | |||||||||
Interest expense including capitalized interest and amortization of capitalized debt expense | $ | 108,533 | $ | 137,815 | $ | 127,374 | $ | 130,090 | $ | 131,649 | $ | 125,384 | ||||||||||||
Amortized debt discount | 13,588 | 16,364 | 8,329 | — | — | — | ||||||||||||||||||
Estimated interest portion of rental expenditures | $ | 12,335 | $ | 13,039 | $ | 11,867 | $ | 11,660 | $ | 7,156 | $ | 4,093 | ||||||||||||
Total Fixed Charges | $ | 134,456 | $ | 167,218 | $ | 147,570 | $ | 141,750 | $ | 138,805 | $ | 129,477 | ||||||||||||
Ratio of Earnings to Fixed Charges | — | — | — | — | — | 1.55 | ||||||||||||||||||
(1) | Due to a loss for the nine months ended September 30, 2011, the ratio was less than 1:1. We would have had to generate additional pre-tax earnings of $321.6 million to achieve coverage of 1:1. During the nine months ended September 30, 2011, we recorded goodwill impairment charges of $196.1 million and long-lived asset impairment charges of $4.4 million. For more information regarding these pre-tax charges, see Notes 9 and 10 to the consolidated financial statements included in our quarterly report on Form 10-Q for the period ended September 30, 2011. | |
(2) | Due to a loss for the year ended December 31, 2010, the ratio was less than 1:1. We would have had to generate additional pre-tax earnings of $224.7 million to achieve coverage of 1:1. During the year, we recorded long-lived asset impairment charges of $146.9 million. For more information regarding these pre-tax charges, see Note 14 to the consolidated financial statements included in our annual report on Form 10-K for the year ended December 31, 2010. | |
(3) | Due to a loss for the year ended December 31, 2009, the ratio was less than 1:1. We would have had to generate additional pre-tax earnings of $110.1 million to achieve coverage of 1:1. During the year, we recorded a goodwill impairment charge of $150.8 million, long-lived asset impairment charges of $97.0 million and restructuring charges of $14.3 million. For more information regarding these pre-tax charges, see Notes 9, 14 and 15, respectively, to the consolidated financial statements included in our annual report on Form 10-K for the year ended December 31, 2010. | |
(4) | Due to a loss for the year ended December 31, 2008, the ratio was less than 1:1. We would have had to generate additional pre-tax earnings of $963.7 million to achieve coverage of 1:1. In the fourth quarter of 2008, we recorded a goodwill impairment charge of $1,148.4 million and a long-lived asset impairment charge of $24.1 million. For more information regarding these pre-tax charges, see Notes 9 and 20, respectively, to the consolidated financial statements included in our annual report on Form 10-K for the year ended December 31, 2008. | |
(5) | Due to a loss for the year ended December 31, 2007, the ratio was less than 1:1. We would have had to generate additional pre-tax earnings of $6.3 million to achieve coverage of 1:1. During the year, we recorded debt extinguishment charges of $70.2 million and an impairment to our fleet assets of $61.9 million. For more information regarding these pre-tax charges, see Notes 11 and 19, respectively, to the consolidated financial statements included in our annual report on Form 10-K for the year ended December 31, 2007. |