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. |