Exhibit 12.1
ASBURY AUTOMOTIVE GROUP, INC.
COMPUTATION OF FINANCIAL RATIOS
(in millions, except ratios)
Ratio of earnings to fixed charges | For the Six Months Ended June 30, | For the Year Ended December 31, | ||||||||||||||||||||||
EARNINGS COMPUTATION: | ||||||||||||||||||||||||
| 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
Income (loss) from continuing operations | $ | 51.1 | $ | 83.3 | $ | 46.5 | $ | 35.4 | $ | 23.5 | $ | (328.4 | ) | |||||||||||
Income tax expense (benefit) | 31.9 | 50.0 | 28.7 | 22.1 | 14.0 | (137.1 | ) | |||||||||||||||||
Fixed charges | 33.3 | 65.3 | 67.7 | 66.4 | 66.7 | 82.1 | ||||||||||||||||||
Amortization of capitalized interest | 0.3 | 0.2 | 0.2 | 0.1 | 0.1 | 0.1 | ||||||||||||||||||
Capitalized interest | (0.6 | ) | (0.9 | ) | (0.4 | ) | (0.5 | ) | (0.4 | ) | (1.1 | ) | ||||||||||||
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Earnings (loss) for purposes of computation | $ | 116.0 | $ | 197.9 | $ | 142.7 | $ | 123.5 | $ | 103.9 | $ | (384.4 | ) | |||||||||||
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FIXED CHARGES COMPUTATION: | ||||||||||||||||||||||||
Interest expense | $ | 17.9 | $ | 34.4 | $ | 38.1 | $ | 34.6 | $ | 34.1 | $ | 34.6 | ||||||||||||
Floor plan interest expense | 5.8 | 10.7 | 8.9 | 8.7 | 10.0 | 20.1 | ||||||||||||||||||
Amortization deferred financing fees | 1.2 | 2.5 | 2.7 | 2.6 | 3.1 | 6.9 | ||||||||||||||||||
Swap interest expense | 2.1 | 5.0 | 5.5 | 6.6 | 6.6 | 5.5 | ||||||||||||||||||
Interest component of rent expense | 5.7 | 11.8 | 12.1 | 13.4 | 12.5 | 13.9 | ||||||||||||||||||
Capitalized interest | 0.6 | 0.9 | 0.4 | 0.5 | 0.4 | 1.1 | ||||||||||||||||||
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Fixed charges for purposes of computation | $ | 33.3 | $ | 65.3 | $ | 67.7 | $ | 66.4 | $ | 66.7 | $ | 82.1 | ||||||||||||
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RATIO OF EARNINGS TO FIXED CHARGES | 3.48x | 3.03x | 2.11x | 1.86x | 1.56x | — | (1) | |||||||||||||||||
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| (1) | In 2008, we incurred $525.9 million of pre-tax impairment charges related to goodwill, franchise rights, other intangible assets and property and equipment. As a result of these impairment charges, our earnings for 2008 were inadequate to cover fixed charges by $466.5 million. |