Exhibit 12
ORBCOMM Inc.
Computation of Ratio of Earnings to Combined Fixed Charges and Preference Dividends
(Amounts in thousands, except the ratio)
Fiscal Year Ended December 31, | ||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||
Earnings (A): | ||||||||||||||||||||
Pre-tax income (loss) from continuing operations | $ | 771 | $ | (1,408 | ) | $ | (2,355 | ) | $ | (2,387 | ) | $ | (2,591 | ) | ||||||
Add: | ||||||||||||||||||||
Fixed charges | 316 | 192 | 193 | 199 | 209 | |||||||||||||||
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1,087 | (1,216 | ) | (2,162 | ) | (2,188 | ) | (2,382 | ) | ||||||||||||
Less: | ||||||||||||||||||||
Interest capitalized | 152 | — | — | — | — | |||||||||||||||
Noncontrolling interest in pre-tax income (loss) of a subsidiary that has not incurred fixed charges | — | 511 | 130 | 471 | — | |||||||||||||||
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Total earnings | $ | 935 | $ | (1,727 | ) | $ | (2,292 | ) | $ | (2,659 | ) | $ | (2,382 | ) | ||||||
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Fixed Charges (B): | ||||||||||||||||||||
Fixed charges included in earnings | $ | 164 | $ | 192 | $ | 193 | $ | 199 | $ | 209 | ||||||||||
Capitalized interest | 152 | — | — | — | — | |||||||||||||||
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Total fixed charges | $ | 316 | $ | 192 | $ | 193 | $ | 199 | $ | 209 | ||||||||||
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Preference Security Dividend (C): | $ | 42 | $ | — | $ | — | $ | — | $ | — | ||||||||||
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Ratio of Earnings to Fixed Charges | 2.9 | N/A | (D) | N/A | (D) | N/A | (D) | N/A | (D)) | |||||||||||
Ratio of Earnings to Combined Fixed Charges and Preference Security Dividends | 2.6 | N/A | (D) | N/A | (D) | N/A | (D) | N/A | (D)) |
(A) | “Earnings” are defined as pre-tax income from continuing operations, adjusted for fixed charges, interest capitalized and income from non-controlling interest of subsidiaries that have not incurred fixed charges. |
(B) | “Fixed charges” are defined as interest on borrowings (whether expensed or capitalized). |
(C) | “Preference Security Dividend” is defined as the amount of pre-tax earnings that is required to pay the dividends on outstanding preferred stock. |
(D) | The ratio coverage was less than 1:1 for fiscal years 2010, 2009, 2008 and 2007. The company would have needed to generate additional pre-tax earnings of $1,919, $2,485, $2,858 and $2,591 to achieve coverage of 1:1 for fiscal years 2010, 2009, 2008 and 2007, respectively. |