Exhibit 12.1
ASBURY AUTOMOTIVE GROUP, INC.
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(in thousands, except ratios)
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Ratio of earnings to fixed charges | | For the Years Ended December 31, | | | For the Three Months Ended March 31, | |
| | 2006 | | | 2005 | | | 2004 | | | 2003 | | | 2002 | | | 2007 | | | 2006 | |
EARNINGS COMPUTATION: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income from continuing operations | | $ | 67,154 | | | $ | 58,233 | | | $ | 49,136 | | | $ | 44,431 | | | $ | 32,767 | | | $ | 2,409 | | | $ | 13,690 | |
Income tax expense | | | 40,546 | | | | 34,852 | | | | 29,199 | | | | 27,232 | | | | 32,786 | | | | 1,458 | | | | 8,214 | |
Fixed charges | | | 103,663 | | | | 85,322 | | | | 71,478 | | | | 63,398 | | | | 58,988 | | | | 27,679 | | | | 24,195 | |
Amortization of capitalized interest | | | 293 | | | | 253 | | | | 199 | | | | 110 | | | | 58 | | | | 74 | | | | 73 | |
Capitalized interest | | | (593 | ) | | | (810 | ) | | | (1,334 | ) | | | (785 | ) | | | (866 | ) | | | (27 | ) | | | (24 | ) |
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Earnings for purposes of computation | | $ | 211,063 | | | $ | 177,850 | | | $ | 148,678 | | | $ | 134,386 | | | $ | 123,733 | | | $ | 31,593 | | | $ | 46,148 | |
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FIXED CHARGES COMPUTATION: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other interest expense | | $ | 42,714 | | | $ | 39,279 | | | $ | 37,473 | | | $ | 34,599 | | | $ | 33,455 | | | $ | 11,397 | | | $ | 10,540 | |
Floor plan interest expense | | | 40,166 | | | | 27,336 | | | | 18,600 | | | | 14,336 | | | | 13,355 | | | | 10,981 | | | | 8,727 | |
Amortization deferred financing fees | | | 2,359 | | | | 2,192 | | | | 1,579 | | | | 5,333 | | | | 4,548 | | | | 627 | | | | 573 | |
Interest component of rent expense | | | 17,831 | | | | 15,705 | | | | 12,492 | | | | 8,345 | | | | 6,764 | | | | 4,647 | | | | 4,331 | |
Capitalized interest | | | 593 | | | | 810 | | | | 1,334 | | | | 785 | | | | 866 | | | | 27 | | | | 24 | |
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Fixed charges for purposes of computation | | $ | 103,663 | | | $ | 85,322 | | | $ | 71,478 | | | $ | 63,398 | | | $ | 58,988 | | | $ | 27,679 | | | $ | 24,195 | |
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RATIO OF EARNINGS TO FIXED CHARGES | | | 2.04 | x | | | 2.08 | x | | | 2.08 | x | | | 2.12 | x | | | 2.10 | x | | | 1.14 | x | | | 1.91 | x |
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