Exhibit 12
Ratio of Earnings to Fixed Charges
The following table sets forth Mx Energy Holdings Inc.'s historical ratios of earnings to fixed charges for the periods indicated. The historical ratios are prepared on a consolidated basis in accordance with generally accepted accounting principals and, therefore, reflect all consolidated earnings and fixed charges.
The ratio of earnings to fixed charges for each of the periods is determined by dividing earnings by fixed charges. Earnings consist of income (loss) from operations before income taxes, amortization of previously capitalized interest and fixed charges, exclusive of capitalized interest cost. Fixed charges consist of interest incurred, unrealized losses on interest rate swaps and amortization of deferred loan costs and hedge facility fees.
| | Three Months Ended December 31, 2006 | Six Months Ended December 31, 2006 | Year Ended June 30, | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (dollars in thousands) | |||||||||||||||||||||||
| 2006 | 2005 | 2004 | 2003 | 2002 | |||||||||||||||||||
| Earnings before fixed charges: | |||||||||||||||||||||||
| Income (loss) before income taxes | $ | (5,529 | ) | $ | (68,708 | ) | $ | (66,783 | ) | $ | 41,230 | $ | 50,293 | $ | 22,460 | $ | 5,504 | ||||||
| Interest and other debt expense | 8,705 | 27,426 | 4,261 | 3,472 | 3,219 | 2,270 | 1,416 | ||||||||||||||||
| Estimated interest portion of rental expense | 200 | 292 | 176 | 130 | 56 | 41 | 22 | ||||||||||||||||
| Earnings (loss) before fixed charges | $ | 3,376 | $ | (40,990 | ) | $ | (62,346 | ) | $ | 44,832 | $ | 53,568 | $ | 24,771 | $ | 6,942 | |||||||
| Fixed charges: | |||||||||||||||||||||||
| Interest and other debt expense | $ | 8,705 | 27,426 | $ | 4,261 | $ | 3,472 | $ | 3,219 | $ | 2,270 | $ | 1,416 | ||||||||||
| Estimated interest portion of rental expense | 200 | 292 | 176 | 130 | 56 | 41 | 22 | ||||||||||||||||
| Total fixed charges | $ | 8,905 | $ | 27,718 | $ | 4,437 | $ | 3,602 | $ | 3,275 | $ | 2,311 | $ | 1,438 | |||||||||
| Ratio of earnings to fixed charges(1)(2) | — | — | — | 12.45 | x | 16.36 | x | 10.72 | x | 4.83 | x | ||||||||||||
