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S-3 Filing
TravelCenters of America (TA) S-3Shelf registration
Filed: 23 Jan 09, 12:00am
Exhibit 12.1
Statement of Computation of Ratio of Earnings to Fixed Charges
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| Company |
| Predecessor |
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| Nine Months |
| Eleven Months |
| One Month |
| Year Ended December 31, |
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| 2008 |
| 2007(3) |
| 2007 |
| 2006 |
| 2005(4) |
| 2004(5) |
| 2003 |
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| (in 000’s, except ratio amounts) |
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Pre-tax income (loss) from continuing operations |
| $ | (41,061 | ) | $ | (102,002 | ) | $ | (62,518 | ) | $ | 49,310 |
| $ | 214 |
| $ | 23,335 |
| $ | 13,863 |
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Income from equity investees |
| 821 |
| 887 |
| — |
| — |
| — |
| — |
| — |
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Fixed charges |
| 70,162 |
| 80,929 |
| 5,819 |
| 55,842 |
| 54,769 |
| 55,242 |
| 54,097 |
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Amortization of capitalized interest |
| — |
| — |
| 7 |
| 24 |
| — |
| — |
| — |
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Capitalized interest |
| — |
| — |
| — |
| (515 | ) | (312 | ) | — |
| — |
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Total earnings |
| $ | 28,280 |
| $ | (21,960 | ) | $ | (56,692 | ) | $ | 105,691 |
| $ | 55,295 |
| $ | 78,577 |
| $ | 67,960 |
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Interest expense(1) |
| $ | 9,892 |
| $ | 15,420 |
| $ | 5,345 |
| $ | 49,637 |
| $ | 49,097 |
| $ | 48,080 |
| $ | 46,973 |
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Estimated interest within rent expense(2) |
| 60,270 |
| 65,509 |
| 474 |
| 5,690 |
| 5,360 |
| 7,162 |
| 7,124 |
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Capitalized interest |
| — |
| — |
| — |
| 515 |
| 312 |
| — |
| — |
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Total fixed charges |
| $ | 70,162 |
| $ | 80,929 |
| $ | 5,819 |
| $ | 55,842 |
| $ | 54,769 |
| $ | 55,242 |
| $ | 54,097 |
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Ratio of earnings to fixed charges |
| — |
| — |
| — |
| 1.89 |
| 1.01 |
| 1.42 |
| 1.26 |
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Deficiency of earnings available to cover fixed charges |
| $ | (41,882 | ) | $ | (102,889 | ) | $ | (62,511 | ) | $ | — |
| $ | — |
| $ | — |
| $ | — |
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(1) | Includes interest expense and amortization of premiums, discounts and capitalized expenses related to indebtedness. |
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(2) | Estimated interest within rent expense includes one-third of rental expense, which approximates the interest component of operating leases. |
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(3) | Includes the operating results of Petro Stopping Centers, L.P. since our acquisition of Petro Stopping Centers, L.P., which was completed on May 30, 2007. |
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(4) | In connection with a refinancing our predecessor completed during 2005, our predecessor recognized expenses of $39.6 million. |
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(5) | Includes the operating results of 11 sites our predecessor acquired on December 1, 2004, beginning on the acquisition date. |