Exhibit 12.1
NII HOLDINGS, INC.
STATEMENT REGARDING COMPUTATION OF RATIO OF EARNINGS
TO FIXED CHARGES
(dollars in thousands)
| Predecessor Company | Successor Company | ||||||||||||||||||||||||
| Ten Months Ended | Two Months Ended | ||||||||||||||||||||||||
| Twelve Months Ended December 31, | October 31, | December 31, | |||||||||||||||||||||||
| 1998 | 1999 | 2000 | 2001 | 2002 | 2002 | ||||||||||||||||||||
| (Loss) income from continuing operations before income tax | $ | (253,662 | ) | $ | (497,964 | ) | $ | (290,122 | ) | $ | (2,378,590 | ) | $ | 1,983,505 | $ | 27,350 | |||||||||
| Add: | |||||||||||||||||||||||||
| Fixed charges | 134,164 | 193,904 | 333,031 | 352,216 | 170,435 | 13,302 | |||||||||||||||||||
| Amortization of capitalized interest | 1,834 | 4,471 | 7,313 | 12,654 | 3,716 | 743 | |||||||||||||||||||
| Less: | |||||||||||||||||||||||||
| Interest capitalized | 23,800 | 10,400 | 26,513 | 42,927 | 8,239 | 971 | |||||||||||||||||||
| Equity in (losses) gains of unconsolidated affiliates | (6,362 | ) | (9,270 | ) | (33,328 | ) | 9,640 | — | — | ||||||||||||||||
| Losses attributable to minority interests | 17,131 | 19,314 | 6,504 | — | — | — | |||||||||||||||||||
| Earnings as adjusted | $ | (152,233 | ) | $ | (320,033 | ) | $ | 50,533 | $ | (2,066,287 | ) | $ | 2,149,417 | $ | 40,424 | ||||||||||
| Preferred stock dividends: | — | — | 61,334 | — | — | — | |||||||||||||||||||
| One minus effective income tax benefit (provision) rate | — | — | 100 | % | — | — | — | ||||||||||||||||||
| Preferred stock dividends on pretax basis | — | — | 61,334 | — | — | — | |||||||||||||||||||
| Fixed charges: | |||||||||||||||||||||||||
| Interest expense on indebtedness (including amortization of debt expense and discount) | $ | 106,824 | $ | 179,604 | $ | 237,743 | $ | 297,228 | $ | 151,579 | $ | 10,469 | |||||||||||||
| Interest capitalized | 23,800 | 10,400 | 26,513 | 42,927 | 8,239 | 971 | |||||||||||||||||||
| Portion of rent expense representative of interest (30%) | 3,540 | 3,900 | 7,441 | 12,061 | 10,617 | 1,862 | |||||||||||||||||||
| Fixed charges | $ | 134,164 | $ | 193,904 | $ | 333,031 | $ | 352,216 | $ | 170,435 | $ | 13,302 | |||||||||||||
| Ratio of earnings to fixed charges | (1.13 | ) | (1.65 | ) | 0.15 | (5.87 | ) | 12.61 | 3.04 | ||||||||||||||||
| Deficiency of earnings to cover fixed charges | $ | 286,397 | $ | 513,937 | $ | — | $ | 2,418,503 | $ | — | $ | — | |||||||||||||
