Exhibit 12.1
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
The following table presents our earnings to fixed charges for the periods indicated:
| | | | | | | | | | | | | | | | | | | | |
| | | Year Ended December 31, | |
| | | 2011 | | | 2010 | | | 2009 | | | 2008 | | | 2007 | |
Earnings: | | | | | | | | | | | | | | | | | | | | |
Income (loss) from continuing operations before taxes (a) | | $ | (20,440 | ) | | $ | (120,413 | ) | | $ | (43,262 | ) | | $ | 108,351 | | | $ | 1,545 | |
Interest expense (b) | | | 60,572 | | | | 59,870 | | | | 44,699 | | | | 42,533 | | | | 44,596 | |
Amortization of deferred financing costs and bond discount | | | 3,298 | | | | 4,338 | | | | 2,386 | | | | 2,507 | | | | 3,705 | |
Preference securities dividends requirements | | | — | | | | — | | | | — | | | | — | | | | 878 | |
Less: Preference securities dividends requirements | | | — | | | | — | | | | — | | | | — | | | | (878 | ) |
| | | | | | | | | | | | | | | | | | | | |
Total earnings | | $ | 43,430 | | | $ | (56,205 | ) | | $ | 3,823 | | | $ | 153,391 | | | $ | 49,846 | |
Fixed charges: | | | | | | | | | | | | | | | | | | | | |
Interest expense (b) | | $ | 60,572 | | | $ | 59,870 | | | $ | 44,699 | | | $ | 42,533 | | | $ | 44,596 | |
Amortization of deferred financing costs and bond discount | | | 3,298 | | | | 4,338 | | | | 2,386 | | | | 2,507 | | | | 3,705 | |
Interest element on rent expense (c) | | | 1,642 | | | | 1,277 | | | | 1,245 | | | | 1,011 | | | | 810 | |
Preference securities dividends requirements (d) | | | — | | | | — | | | | — | | | | — | | | | 878 | |
| | | | | | | | | | | | | | | | | | | | |
Total fixed charges | | $ | 65,512 | | | $ | 65,485 | | | $ | 48,330 | | | $ | 46,051 | | | $ | 49,989 | |
Ratio of earnings to fixed charges (e) | | | — | | | | — | | | | — | | | | 3.33 | | | | — | |
| (a) | For the year ended December 31, 2010, income (loss) from continuing operations before taxes includes a non-cash goodwill impairment charge of $62.8 million. |
| (b) | For the year ended December 31, 2009, interest expense includes a non-recurring non-cash charge of $7.5 million associated with a deferred loss recognized on interest rate derivatives for which previously hedged cash flows no longer exists as a result of the repayment of the first and second lien term loans on December 23, 2009. |
| (c) | Interest on operating leases estimated to be 33% of annual rental expense. |
| (d) | Preferred partnership unit interest and dividend requirement grossed up for income taxes in deriving the pre-tax income required to pay dividends through May 11, 2007, the cancellation date of the preferred partnership units. |
| (e) | For the years ended December 31, 2011, 2010, 2009 and 2007 earnings were insufficient by $22.1 million, $121.7 million $44.5 million and $0.1 million, respectively, to cover fixed charges. |
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