Exhibit 12.1
ASBURY AUTOMOTIVE GROUP, INC.
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(in thousands, except ratios)
Ratio of earnings to fixed charges | For the Years Ended December 31, | For the Six Months Ended June 30, | ||||||||||||||||||||||||||
| 2006 | 2005 | 2004 | 2003 | 2002 | 2007 | 2006 | ||||||||||||||||||||||
EARNINGS COMPUTATION: | ||||||||||||||||||||||||||||
Income from continuing operations | $ | 67,154 | $ | 58,233 | $ | 49,136 | $ | 44,431 | $ | 32,767 | $ | 23,575 | $ | 33,213 | ||||||||||||||
Income tax expense | 40,546 | 34,852 | 29,199 | 27,232 | 32,786 | 14,025 | 19,927 | |||||||||||||||||||||
Fixed charges | 103,663 | 85,322 | 71,478 | 63,398 | 58,988 | 53,005 | 51,029 | |||||||||||||||||||||
Amortization of capitalized interest | 293 | 253 | 199 | 110 | 58 | 153 | 136 | |||||||||||||||||||||
Capitalized interest | (593 | ) | (810 | ) | (1,334 | ) | (785 | ) | (866 | ) | (206 | ) | (299 | ) | ||||||||||||||
Earnings for purposes of computation | $ | 211,063 | $ | 177,850 | $ | 148,678 | $ | 134,386 | $ | 123,733 | $ | 90,552 | $ | 104,006 | ||||||||||||||
FIXED CHARGES COMPUTATION: | ||||||||||||||||||||||||||||
Other interest expense | $ | 42,714 | $ | 39,279 | $ | 37,473 | $ | 34,599 | $ | 33,455 | $ | 20,147 | $ | 21,310 | ||||||||||||||
Floor plan interest expense | 40,166 | 27,336 | 18,600 | 14,336 | 13,355 | 21,929 | 19,519 | |||||||||||||||||||||
Amortization deferred financing fees | 2,359 | 2,192 | 1,579 | 5,333 | 4,548 | 1,284 | 1,158 | |||||||||||||||||||||
Interest component of rent expense | 17,831 | 15,705 | 12,492 | 8,345 | 6,764 | 9,439 | 8,743 | |||||||||||||||||||||
Capitalized interest | 593 | 810 | 1,334 | 785 | 866 | 206 | 299 | |||||||||||||||||||||
Fixed charges for purposes of computation | $ | 103,663 | $ | 85,322 | $ | 71,478 | $ | 63,398 | $ | 58,988 | $ | 53,005 | $ | 51,029 | ||||||||||||||
RATIO OF EARNINGS TO FIXED CHARGES | 2.04 | x | 2.08 | x | 2.08 | x | 2.12 | x | 2.10 | x | 1.71 | x | 2.04 | x | ||||||||||||||