Exhibit 12
NCO Group, Inc.
Ratio of Earnings to Fixed Charges
(in thousands, except for ratios)
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
Earnings: | ||||||||||||||||
Add: | ||||||||||||||||
Loss before income taxes and minority interest | $ | (25,946 | ) | $ | (721 | ) | $ | (38,751 | ) | $ | (2,607 | ) | ||||
Fixed charges | 27,181 | 26,177 | 53,034 | 53,653 | ||||||||||||
Amortization of capitalized interest | 3 | 3 | 6 | 5 | ||||||||||||
| 1,238 | 25,459 | 14,289 | 51,051 | |||||||||||||
Subtract: | ||||||||||||||||
Capitalized interest | 25 | — | 25 | — | ||||||||||||
Distributions to minority holders | 2,284 | 3,245 | 5,631 | 3,992 | ||||||||||||
| 2,309 | 3,245 | 5,656 | 3,992 | |||||||||||||
Earnings | $ | (1,071 | ) | $ | 22,214 | $ | 8,633 | $ | 47,059 | |||||||
Fixed Charges: | ||||||||||||||||
Interest expense | $ | 23,003 | $ | 23,116 | $ | 45,410 | $ | 47,458 | ||||||||
Capitalized interest | 25 | — | 25 | — | ||||||||||||
Portion of rentals deemed to be interest | 4,153 | 3,061 | 7,599 | 6,195 | ||||||||||||
| $ | 27,181 | $ | 26,177 | $ | 53,034 | $ | 53,653 | |||||||||
Ratio of earnings to fixed charges | (0.0 | )x | 0.8x | 0.2x | 0.9x | |||||||||||