Exhibit 12
NCO Group, Inc.
Ratio of Earnings to Fixed Charges
(in thousands, except for ratios)
| Successor | Predecessor | Successor | Predecessor | |||||||||||||
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||
Earnings: | ||||||||||||||||
Add: | ||||||||||||||||
(Loss) income before income taxes and minority interest | $ | (1 | ) | $ | 17,720 | $ | (204 | ) | $ | 35,618 | ||||||
Fixed charges | 26,099 | 9,775 | 53,479 | 20,069 | ||||||||||||
Amortization of capitalized interest | 3 | 3 | 5 | 5 | ||||||||||||
| 26,101 | 27,498 | 53,280 | 55,692 | |||||||||||||
Subtract: | ||||||||||||||||
Distributions to minority holders | 3,245 | 383 | 3,992 | 2,283 | ||||||||||||
Earnings | $ | 22,856 | $ | 27,115 | $ | 49,288 | $ | 53,409 | ||||||||
Fixed Charges: | ||||||||||||||||
Interest expense | $ | 23,084 | $ | 6,793 | $ | 47,369 | $ | 13,804 | ||||||||
Amortization of deferred financing charges not included in interest expense | — | 33 | — | 230 | ||||||||||||
Portion of rentals deemed to be interest | 3,015 | 2,949 | 6,110 | 6,035 | ||||||||||||
| $ | 26,099 | $ | 9,775 | $ | 53,479 | $ | 20,069 | |||||||||
Ratio of earnings to fixed charges | 0.9 | x | 2.8 | x | 0.9 | x | 2.7 | x | ||||||||