Exhibit 12.1
CAMPUS CREST COMMUNITIES, INC. AND
CAMPUS CREST COMMUNITIES PREDECESSOR
RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
The Company | Predecessor | |||||||||||||||||||||||
Period October 19, | Period January 1, | |||||||||||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | 2010 through | 2010 through | |||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | December 31, | October 18, | |||||||||||||||||||
(dollars in thousands) | 2014 | 2013 | 2012 | 2011 | 2010(1) | 2010(1) | ||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
Income (loss) from continuing operations before taxes, noncontrolling interests and equity in earnings (losses) of unconsolidated entities | $ | (148,139 | )(2) | $ | 3,749 | $ | 6,505 | (3) | $ | 1,122 | (4) | $ | (1,253 | )(5) | $ | (19,563 | ) | |||||||
Add: Fixed charges | 34,669 | 22,424 | 18,044 | 8,838 | 2,324 | 19,464 | ||||||||||||||||||
Add: Distributions of earnings of unconsolidated entities | 502 | 17 | 766 | - | - | - | ||||||||||||||||||
Add: Amortization of capitalized interest(6) | 257 | 191 | 113 | 53 | 1 | 113 | ||||||||||||||||||
Less: Capitalized interest | (6,313 | ) | (3,272 | ) | (2,385 | ) | (1,950 | ) | (175 | ) | (85 | ) | ||||||||||||
Total earnings (loss) | $ | (119,024 | ) | $ | 23,109 | $ | 23,043 | $ | 8,063 | $ | 897 | $ | (71 | ) | ||||||||||
Combined fixed charges and preferred stock dividends: | ||||||||||||||||||||||||
Interest expense | $ | 16,156 | $ | 12,969 | $ | 11,545 | $ | 6,888 | $ | 2,149 | $ | 19,379 | ||||||||||||
Capitalized interest | 6,313 | 3,272 | 2,385 | 1,950 | 175 | 85 | ||||||||||||||||||
Dividends on preferred stock(7) | 12,200 | 6,183 | 4,114 | - | - | - | ||||||||||||||||||
Combined fixed charges and preferred stock dividends | $ | 34,669 | $ | 22,424 | $ | 18,044 | $ | 8,838 | $ | 2,324 | $ | 19,464 | ||||||||||||
Ratio of earnings to combined fixed charges and preferred stock dividends(8) | 0 | x | 1.03 | x | 1.28 | x | 0.91 | x | 0.39 | x | 0 | x |
(1) | The Company’s initial public offering was completed October 19, 2010. |
(2) | Includes impairments of pre-development costs, unconsolidated joint ventures, and other assets of approximately $104.8 million, severance of approximately $6.2 million, and non-cash loss of approximately $33.4 million in connection with not exercising the Copper Beech purchase option, which if excluded would result in a ratio of earnings to fixed charges of 0.73x. |
(3) | Includes non-cash gain of approximately $6.6 million recognized in connection with the acquisition of the Company’s joint venture partner's interest in The Grove at Moscow and The Grove at Valdosta, which if excluded would result in a ratio of earnings to fixed charges of 0.91x. |
(4) | Includes non-cash gain of approximately $3.2 million recognized in connection with the acquisition of the Company’s joint venture partner's interest in The Grove at Huntsville and The Grove at Statesboro, which if excluded would result in a ratio of earnings to fixed charges of 0.61x. |
(5) | Includes non-cash gain of approximately $0.6 million recognized in connection with the acquisition of The Company’s joint venture partner's interest in The Grove at San Marcos, which if excluded would result in a ratio of earnings to fixed charges of 0.53x. |
(6) | Represents an estimate based on the Company's and the Predecessor's established depreciation policies and an analysis of capitalized interest. |
(7) | The Company issued preferred stock in February 2012 and October 2013. |
(8) | The shortfall of earnings to combined fixed charges and preferred stock dividends for the year ended December 31, 2014 was approximately $153.7 million. The shortfall of earnings to combined fixed charges and preferred stock dividends for Campus Crest Communities, Inc. for the period October 19, 2010 through December 31, 2010 was approximately $1.4 million and for the Company’s Predecessor for the period January 1, 2010 through October 18, 2010 it was approximately $19.5 million. |