Exhibit 12
NCO Group, Inc.
Ratio of Earnings to Fixed Charges
(in thousands, except for ratios)
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| For the Years Ended |
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| December 31, |
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| 2009(1)(2) |
| 2008(1)(3) |
| 2007(1) |
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Earnings: |
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Add: |
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Loss before income taxes and noncontrolling interest |
| $ | (89,308 | ) | $ | (427,303 | ) | $ | (45,091 | ) |
Fixed charges |
| 121,673 |
| 117,602 |
| 107,534 |
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Amortization of capitalized interest |
| 12 |
| 11 |
| 11 |
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| 32,377 |
| (309,689 | ) | 62,454 |
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Subtract: |
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Interest capitalized |
| — |
| 25 |
| — |
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Distributions to noncontrolling interest holders |
| 7,855 |
| 12,242 |
| 6,934 |
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|
| 7,855 |
| 12,267 |
| 6,934 |
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Earnings |
| $ | 24,522 |
| $ | (321,957 | ) | $ | 55,520 |
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Fixed Charges: |
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Interest expense |
| $ | 99,212 |
| $ | 94,831 |
| $ | 95,294 |
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Interest capitalized |
| — |
| 25 |
| — |
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Portion of rentals deemed to be interest |
| 22,461 |
| 22,746 |
| 12,240 |
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| $ | 121,673 |
| $ | 117,602 |
| $ | 107,534 |
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Ratio of earnings to fixed charges |
| 0.2 |
| (2.7 | )x | 0.5 | x | |||
(1) | For the years ended December 31, 2009, 2008 and 2007, 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 $97.2 million, $439.6 million and $52.0 million, respectively, less than fixed charges. |
(2) | Loss before income taxes and minority interest includes intangible asset impairment charges of $30.0 million and restructuring charges of $10.9 million. |
(3) | Loss before income taxes and minority interest includes intangible asset impairment charges of $289.5 million and restructuring charges of $11.6 million. |