Exhibit 12.1
Statement of Computation of Ratio of Earnings to Fixed Charges
KAR Holdings, Inc.
(in millions, except ratios)
| | | | | | | | | | | | |
| | | Year Ended
December 31,
2007(1) | | | Pro Forma
Year Ended
December 31,
2007 | | | Year Ended
December 31,
2008 | |
| | | |
Loss before income taxes | | $ | (48.3 | ) | | | (43.2 | ) | | $ | (247.6 | ) |
| | | | | | | | | | | | |
Fixed charges(2) | | | | | | | | | | | | |
Interest expense | | | 162.3 | | | | 226.3 | | | | 215.2 | |
Interest component of all rentals | | | 14.2 | | | | 19.8 | | | | 24.6 | |
| | | | | | | | | | | | |
Total fixed charges | | | 176.5 | | | | 246.1 | | | | 239.8 | |
(Losses) Earnings before income taxes and fixed charges | | $ | 128.2 | | | $ | 202.9 | | | $ | (7.8 | ) |
| | | | | | | | | | | | |
Ratio of earnings to fixed charges | | | — | | | | — | | | | — | |
Deficiency | | | (48.3 | ) | | | (43.2 | ) | | | (247.6 | ) |
| (1) | KAR Holdings, Inc. was organized in the state of Delaware on November 9, 2006. However, the Company had no operations prior to the merger transactions on April 20, 2007. |
| (2) | Fixed charges represent interest and the interest component of all rentals. The Company uses a reasonable approximation of the interest factor related to operating leases in calculating the interest component of all rentals. |
ADESA, Inc.
(in millions, except ratios)
| | | | | | | | | | | | |
| | | For years ended December 31, | | From
January 1, 2007
to
April 19, 2007 |
| | | 2004 | | 2005 | | 2006 | |
Income from continuing operations before Income taxes | | $ | 178.1 | | $ | 201.9 | | $ | 204.4 | | $ | 51.9 |
| | | | | | | | | | | | |
Fixed charges(1) | | | | | | | | | | | | |
Interest expense | | | 25.4 | | | 31.2 | | | 27.4 | | | 7.8 |
Interest component of all rentals | | | 7.2 | | | 7.3 | | | 7.9 | | | 2.4 |
| | | | | | | | | | | | |
Total fixed charges | | | 32.6 | | | 38.5 | | | 35.3 | | | 10.2 |
Earnings before income taxes and fixed charges | | $ | 210.7 | | $ | 240.4 | | $ | 239.7 | | $ | 62.1 |
| | | | | | | | | | | | |
Ratio of earnings to fixed charges | | | 6.5 | | | 6.2 | | | 6.8 | | | 6.1 |
| | | | | | | | | | | | |
| (1) | Fixed charges represent interest and the interest component of all rentals. ADESA uses a reasonable approximation of the interest factor related to operating leases in calculating the interest component of all rentals. |
Insurance Auto Auctions, Inc.
(in thousands, except ratios)
| | | | | | | | | | | | | | | | | |
| | | For the year ended
December 31, 2004 | | From
December 27, 2004
to
May 25, 2005 | | From
May 26, 2005
to
December 25, 2005 | | | For year ended
December 31, 2006 | | | From
January 1, 2007
to
April 19, 2007 |
| | | | | | |
Fixed charges | | | | | | | | | | | | | | | | | |
Interest expense, net (1) | | | 1,505 | | | 567 | | | 15,021 | | | | 30,596 | | | | 10,023 |
Interest factor attributable to rentals | | | 8,025 | | | 3,583 | | | 5,308 | | | | 10,029 | | | | 3,394 |
| | | | | | | | | | | | | | | | | |
Fixed Charges | | $ | 9,530 | | $ | 4,150 | | $ | 20,329 | | | $ | 40,625 | | | $ | 13,417 |
| | | | | | | | | | | | | | | | | |
Earnings | | | | | | | | | | | | | | | | | |
Pre-tax (loss) income from continuing operations | | | 19,404 | | | 4,459 | | | (6,766 | ) | | | (8,855 | ) | | | 1,084 |
Plus fixed charges | | | 9,530 | | | 4,150 | | | 20,329 | | | | 40,625 | | | | 13,417 |
| | | | | | | | | | | | | | | | | |
Earnings | | $ | 28,934 | | $ | 8,609 | | $ | 13,563 | | | $ | 31,770 | | | $ | 14,501 |
| | | | | | | | | | | | | | | | | |
Ratio of earnings to fixed charges | | | 3.0 | | | 2.1 | | | — | | | | — | | | | 1.1 |
Deficiency | | | — | | | — | | | (6,766 | ) | | | (8,855 | ) | | | — |
| (1) | Includes amortization on debt issuance cost. |
