Exhibit 12.1
ASBURY AUTOMOTIVE GROUP, INC.
COMPUTATION OF FINANCIAL RATIOS
(in millions, except ratios)
Ratio of earnings to fixed charges | For the Three Months Ended March 31, | For the Years Ended December 31, | ||||||||||||||||||||||||||||
| 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||||||||
EARNINGS COMPUTATION: | ||||||||||||||||||||||||||||||
Income from continuing operations | $ | 4.7 | $ | 37.3 | $ | 25.2 | $ | (327.0 | ) | $ | 42.7 | $ | 52.4 | |||||||||||||||||
Income tax Expense | 2.9 | 23.2 | 15.1 | (136.2 | ) | 23.6 | 31.7 | |||||||||||||||||||||||
Fixed charges | 18.0 | 68.3 | 69.2 | 85.2 | 89.8 | 90.2 | ||||||||||||||||||||||||
Amortization of capitalized interest | — | 0.2 | 0.2 | 0.1 | 0.1 | 0.1 | ||||||||||||||||||||||||
Capitalized interest | — | (0.5 | ) | (0.4 | ) | (1.1 | ) | (0.3 | ) | (0.6 | ) | |||||||||||||||||||
Earnings for purposes of computation | $ | 25.6 | $ | 128.5 | $ | 109.3 | $ | (379.0 | ) | $ | 155.9 | $ | 173.8 | |||||||||||||||||
FIXED CHARGES COMPUTATION: | ||||||||||||||||||||||||||||||
Interest expense | $ | 10.1 | $ | 35.4 | $ | 35.5 | $ | 39.8 | $ | 38.7 | $ | 37.5 | ||||||||||||||||||
Floor plan interest expense | 2.7 | 9.2 | 10.5 | 21.5 | 30.4 | 29.0 | ||||||||||||||||||||||||
Amortization deferred financing fees | 0.7 | 2.5 | 3.1 | 2.6 | 2.5 | 6.7 | ||||||||||||||||||||||||
Swap Interest Expense | 1.4 | 6.6 | 6.6 | 5.5 | 1.7 | 1.3 | ||||||||||||||||||||||||
Interest component of rent expense | 3.1 | 14.1 | 13.1 | 14.7 | 16.2 | 15.1 | ||||||||||||||||||||||||
Capitalized interest | — | 0.5 | 0.4 | 1.1 | 0.3 | 0.6 | ||||||||||||||||||||||||
Fixed charges for purposes of computation | $ | 18.0 | $ | 68.3 | $ | 69.2 | $ | 85.2 | $ | 89.8 | $ | 90.2 | ||||||||||||||||||
RATIO OF EARNINGS TO FIXED CHARGES | 1.42 | × | 1.88 | × | 1.58 | × | — | (1) | 1.74 | × | 1.93 | × | ||||||||||||||||||
| (1) | In December 2008, we incurred $528.7 million of pre-tax impairment expenses related to goodwill, franchise rights, other intangible assets and property and equipment. As a result of these impairment charges, our earnings for 2008 were inadequate to cover fixed charges (as calculated above) by $464.2 million. |
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