Exhibit 12
NCO Group, Inc.
Ratio of Earnings to Fixed Charges
(in thousands, except for ratios)
|
| For the Three Months Ended |
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|
| March 31, |
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|
| 2009(1) |
| 2008(1) |
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Earnings: |
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|
|
|
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Add: |
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|
|
|
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Loss before income taxes and noncontrolling interest |
| $ | (3,825 | ) | $ | (12,805 | ) |
Fixed charges |
| 28,688 |
| 27,397 |
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Amortization of capitalized interest |
| 3 |
| 3 |
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|
| 24,866 |
| 14,595 |
| ||
Subtract: |
|
|
|
|
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Distributions to noncontrolling interest holders |
| 2,317 |
| 3,347 |
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|
| 2,317 |
| 3,347 |
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Earnings |
| $ | 22,549 |
| $ | 11,248 |
|
|
|
|
|
|
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Fixed Charges: |
|
|
|
|
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Interest expense |
| $ | 23,110 |
| $ | 22,407 |
|
Portion of rentals deemed to be interest |
| 5,578 |
| 4,990 |
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|
| $ | 28,688 |
| $ | 27,397 |
|
|
|
|
|
|
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Ratio of earnings to fixed charges |
| 0.8 | x | 0.4 | x | ||
(1) For the three months ended March 31, 2009 and 2008, the Company’s ratio of earnings to fixed charges indicated a less than one-to-one coverage. The deficiency was a result of earnings that were $6.1 million and $16.1 million, respectively, less than fixed charges.