Exhibit 12.1
Goodman Networks Incorporated
Computation of Historical Ratios of Earnings to Fixed Charges (a)
(In Thousands, Except Ratio Data)
Year Ended | ||||||||||||
December 31, 2010 | December 31, 2011 | December 31, 2012 | ||||||||||
Earnings | ||||||||||||
Income before income tax expense | $ | (18,484 | ) | $ | 31,494 | $ | (5,139 | ) | ||||
Fixed charges | 6,569 | 22,231 | 33,980 | |||||||||
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Adjusted Earnings | $ | (11,915 | ) | $ | 53,725 | $ | 28,841 | |||||
Fixed Charges | ||||||||||||
Interest expense | $ | 5,319 | $ | 17,803 | $ | 29,909 | ||||||
Amortization of debt discount and deferred financing costs | 399 | 2,745 | 2,089 | |||||||||
Interest component of rental expense | 851 | 1,683 | 1,982 | |||||||||
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Total Fixed charges | $ | 6,569 | $ | 22,231 | $ | 33,980 | ||||||
Ratio of earnings to fixed charges | — | (b) | 2.42 | — | (c) | |||||||
Interest component of rental expense (estimated 33%) | 33 | % | 33 | % | 33 | % |
(a) | For purposes of calculating the ratio of earnings to fixed charges, earnings represents income before income tax expense plus fixed charges. Fixed charges include interest expense, amortized discounts related to indebtedness, amortization of deferred debt issuance costs, and the portion of rental expense that management believes is representative of the appropriate interest component of rent expense. |
(b) | For the year ended December 31, 2010, earnings were insufficient to cover fixed charges by $18.5 million. |
(c) | For the year ended December 31, 2012, earnings were insufficient to cover fixed charges by $5.1 million. |