Exhibit 12
Rural Cellular Corporation, Inc.
Computation of Ratio of Earnings to Fixed Charges | ||
(Dollars in thousands) |
Six Months Ended | ||||||||||||||||||||||||||||||
Years Ended December 31, | June 30, | |||||||||||||||||||||||||||||
2005 | 2004 | 2003 | 2002 | 2001 | 2006 | 2005 | ||||||||||||||||||||||||
Earnings (loss) | ||||||||||||||||||||||||||||||
Pretax income (loss) | $ | (64,540 | ) | $ | (60,613 | ) | $ | (11,205 | ) | $ | 21,162 | $ | (49,212 | ) | $ | (47,112 | ) | $ | (34,843 | ) | ||||||||||
Add back: fixed charges as disclosed below | 176,600 | 168,089 | 138,600 | 113,502 | 132,027 | 99,534 | 83,660 | |||||||||||||||||||||||
Less: capitalized interest | (1,849 | ) | (1,900 | ) | (204 | ) | — | — | (299 | ) | (1,670 | ) | ||||||||||||||||||
Earnings (loss) as adjusted | 110,211 | 105,576 | 127,191 | 134,664 | 82,815 | 52,123 | 47,147 | |||||||||||||||||||||||
Computation of fixed charges | ||||||||||||||||||||||||||||||
Interest expense | 169,610 | 162,250 | 135,346 | 110,597 | 129,260 | 96,213 | 79,666 | |||||||||||||||||||||||
Capitalized interest | 1,849 | 1,900 | 204 | — | — | 299 | 1,670 | |||||||||||||||||||||||
Portion of rent expense representative of interest factor | 5,141 | 3,939 | 3,050 | 2,905 | 2,767 | 3,022 | 2,324 | |||||||||||||||||||||||
Total fixed charges | 176,600 | 168,089 | 138,600 | 113,502 | 132,027 | 99,534 | 83,660 | |||||||||||||||||||||||
Earnings (deficiency) to fixed charges | $ | (66,389 | ) | $ | (62,513 | ) | $ | (11,409 | ) | $ | 21,162 | $ | (49,212 | ) | $ | (47,411 | ) | $ | (36,513 | ) | ||||||||||
Ratio of earnings to fixed charges | — | — | — | 1.19 | X | — | — | — |
• | Fixed charges consist of all interest, whether expensed or capitalized, amortization of debt costs, and the portion of rent expense representing interest. | |
• | Earnings consist of income before income tax, extraordinary item, cumulative effect adjustment, and preferred stock dividends plus fixed charges reduced by capitalized interest. | |
• | The ratio of earnings to fixed charges is computed by dividing fixed charges into earnings. |