Exhibit 12.1
Statement of Computation of Ratio of Earnings to Fixed Charges
KAR Holdings
(in millions, except ratios)
| | | | | | | | | | |
| | Pro forma year ended December 31, 2006 | | | Nine months ended September 30, 2007 | | Pro forma January 1, 2007 to September 30, 2007 |
Income (loss) from continuing operations before income taxes | | $ | (60.4 | ) | | $ | 2.5 | | $ | 2.6 |
| | | | | | | | | | |
Fixed charges: | | | | | | | | | | |
Interest expense | | | 229.8 | | | | 104.4 | | | 167.0 |
Interest component of rentals: | | | | | | | | | | |
Buildings - 1/3 | | | 13.1 | | | | 7.1 | | | 11.5 |
Autos and trucks - 1/3 | | | 0.9 | | | | 0.4 | | | 0.7 |
Office and other equipment - 1/3 | | | 3.2 | | | | 1.2 | | | 2.1 |
| | | | | | | | | | |
Total interest component of rentals: | | | 17.2 | | | | 8.7 | | | 14.3 |
Total fixed charges | | $ | 247.0 | | | $ | 113.1 | | $ | 181.3 |
Earnings before income taxes and fixed charges | | $ | 186.6 | | | $ | 115.6 | | $ | 183.9 |
Ratio of earnings to fixed charges | | | — | | | | 1.0 | | | 1.0 |
| | | | | | | | | | |
Deficiency | | | (60.4 | ) | | | — | | | — |
ADESA, Inc.
(in millions, except ratios)
| | | | | | | | | | | | | | | | | | |
| | For years ended December 31, | | From January 1, 2007 to April 19, 2007 |
| | 2002 | | 2003 | | 2004 | | 2005 | | 2006 | |
Income from continuing operations before Income taxes | | $ | 152.0 | | $ | 188.1 | | $ | 178.1 | | $ | 201.9 | | $ | 204.4 | | $ | 51.9 |
| | | | | | | | | | | | | | | | | | |
Fixed charges(1) | | | | | | | | | | | | | | | | | | |
Interest expense | | | 22.5 | | | 16.0 | | | 25.4 | | | 31.2 | | | 27.4 | | | 7.8 |
Interest component of all rentals | | | 8.0 | | | 7.8 | | | 7.2 | | | 7.3 | | | 7.9 | | | 2.4 |
| | | | | | | | | | | | | | | | | | |
Total fixed charges | | | 30.5 | | | 23.8 | | | 32.6 | | | 38.5 | | | 35.3 | | | 10.2 |
Earnings before income taxes and fixed charges | | $ | 182.5 | | $ | 211.9 | | $ | 210.7 | | $ | 240.4 | | $ | 239.7 | | $ | 62.1 |
| | | | | | | | | | | | | | | | | | |
Ratio of earnings to fixed charges | | | 6.0 | | | 8.9 | | | 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)
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| | For years ended December 31, | | 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 |
| | 2002 | | 2003 | | 2004 | | | | |
Fixed charges | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense, net (1) | | | 507 | | | 1,375 | | | 1,505 | | | 567 | | | 15,021 | | | | 30,596 | | | | 10,023 |
Interest factor attributable to rentals | | | 7,359 | | | 7,493 | | | 8,025 | | | 3,583 | | | 5,308 | | | | 10,029 | | | | 3,394 |
| | | | | | | | | | | | | | | | | | | | | | | |
Fixed Charges | | $ | 7,866 | | $ | 8,868 | | $ | 9,530 | | $ | 4,150 | | $ | 20,329 | | | $ | 40,625 | | | $ | 13,417 |
| | | | | | | | | | | | | | | | | | | | | | | |
Earnings | | | | | | | | | | | | | | | | | | | | | | | |
Pre-tax (loss) income from continuing operations | | | 7,023 | | | 3,636 | | | 19,404 | | | 4,459 | | | (6,766 | ) | | | (8,855 | ) | | | 1,084 |
Plus fixed charges | | | 7,866 | | | 8,868 | | | 9.530 | | | 4,150 | | | 20,329 | | | | 40,625 | | | | 13,417 |
| | | | | | | | | | | | | | | | | | | | | | | |
Earnings | | $ | 14,889 | | $ | 12,504 | | $ | 28,934 | | $ | 8,609 | | $ | 13,563 | | | $ | 31,770 | | | $ | 14,501 |
| | | | | | | | | | | | | | | | | | | | | | | |
Ratio of earnings to fixed charges | | | 1.9 | | | 1.4 | | | 3.0 | | | 2.1 | | | — | | | | — | | | | 1.1 |
Deficiency | | | — | | | — | | | — | | | — | | | (6,766 | ) | | | (8,855 | ) | | | — |
(1) | Includes amortization on debt issuance cost. |