Exhibit 12.1
Computation of Ratio of Earnings to Combined Fixed Charges
and Preferred Share Dividends
The following table sets forth our ratio of earnings to combined fixed charges and preferred share dividends for the periods shown (in thousands, except ratio amount):
|
| | | | | | | | | | | | |
| | | Year Ended December 31, |
| | | 2012 | | 2011 | | 2010 |
| Income (loss) before income taxes | | $ | 27,915 |
| | $ | 9,154 |
| | $ | (1,257 | ) |
| Add: | | | | | | |
| Interest expense (including amortization of capitalized interest) | | 20,976 |
| | 12,868 |
| | 2,344 |
|
| Portion of rental expense representing interest | | 349 |
| | 40 |
| | 8 |
|
| Total earnings | | $ | 49,240 |
| | $ | 22,062 |
| | $ | 1,095 |
|
| Fixed charges and preferred share dividends: | | | | | | |
| Interest expense (including amortization of capitalized interest) | | $ | 20,976 |
| | $ | 12,868 |
| | $ | 2,344 |
|
| Portion of rental expense representing interest | | 349 |
| | 40 |
| | 8 |
|
| Preferred share dividends | | 4,413 |
| | — |
| | — |
|
| Total fixed charges and preferred share dividends | | $ | 25,738 |
| | $ | 12,908 |
| | $ | 2,352 |
|
| Ratio of earnings to combined fixed charges and preferred share dividends | | 1.9 |
| | 1.7 |
| | (a) |
|
| |
| (a) | Earnings did not cover fixed charges and preferred share dividends by $1,257. |
On July 17, 2012, we issued 5,000,000 of our 7.75% Series A Cumulative Redeemable Preferred Shares and accordingly preferred share dividends from that date through December 31, 2012 are included in the calculation of ratio of earnings to combined fixed charges and preferred share dividends for the year ended December 31, 2012. For the years ended December 31, 2011 and 2010, we had no outstanding preferred shares, and therefore, there were no preferred share dividends included in the calculations of earnings to combined fixed charges and preferred share dividends for these periods.
