Exhibit 12.1
ASBURY AUTOMOTIVE GROUP, INC.
COMPUTATION OF FINANCIAL RATIOS
(in millions, except ratios)
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Ratio of earnings to fixed charges | | For the Three Months Ended March 31, | | | For the Year Ended December 31, | |
EARNINGS COMPUTATION: | | | | | | | | | | | | | | | | | | | | | | | | |
| | 2013 | | | 2012 | | | 2011 | | | 2010 | | | 2009 | | | 2008 | |
Income (loss) from continuing operations | | $ | 23.9 | | | $ | 83.3 | | | $ | 46.5 | | | $ | 35.4 | | | $ | 23.5 | | | $ | (328.4 | ) |
Income tax expense (benefit) | | | 15.2 | | | | 50.0 | | | | 28.7 | | | | 22.1 | | | | 14.0 | | | | (137.1 | ) |
Fixed charges | | | 16.7 | | | | 65.3 | | | | 67.7 | | | | 66.4 | | | | 66.7 | | | | 82.1 | |
Amortization of capitalized interest | | | 0.2 | | | | 0.2 | | | | 0.2 | | | | 0.1 | | | | 0.1 | | | | 0.1 | |
Capitalized interest | | | (0.3 | ) | | | (0.9 | ) | | | (0.4 | ) | | | (0.5 | ) | | | (0.4 | ) | | | (1.1 | ) |
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Earnings (loss) for purposes of computation | | $ | 55.7 | | | $ | 197.9 | | | $ | 142.7 | | | $ | 123.5 | | | $ | 103.9 | | | $ | (384.4 | ) |
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FIXED CHARGES COMPUTATION: | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | $ | 8.9 | | | $ | 34.4 | | | $ | 38.1 | | | $ | 34.6 | | | $ | 34.1 | | | $ | 34.6 | |
Floor plan interest expense | | | 2.8 | | | | 10.7 | | | | 8.9 | | | | 8.7 | | | | 10.0 | | | | 20.1 | |
Amortization deferred financing fees | | | 0.6 | | | | 2.5 | | | | 2.7 | | | | 2.6 | | | | 3.1 | | | | 6.9 | |
Swap interest expense | | | 1.2 | | | | 5.0 | | | | 5.5 | | | | 6.6 | | | | 6.6 | | | | 5.5 | |
Interest component of rent expense | | | 2.9 | | | | 11.8 | | | | 12.1 | | | | 13.4 | | | | 12.5 | | | | 13.9 | |
Capitalized interest | | | 0.3 | | | | 0.9 | | | | 0.4 | | | | 0.5 | | | | 0.4 | | | | 1.1 | |
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Fixed charges for purposes of computation | | $ | 16.7 | | | $ | 65.3 | | | $ | 67.7 | | | $ | 66.4 | | | $ | 66.7 | | | $ | 82.1 | |
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RATIO OF EARNINGS TO FIXED CHARGES | | | 3.34x | | | | 3.03x | | | | 2.11x | | | | 1.86x | | | | 1.56x | | | | — | (1) |
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(1) | In 2008, we incurred $525.9 million of pre-tax impairment charges related to goodwill, franchise rights, other intangible assets and property and equipment. As a result of these impairment charges, our earnings for 2008 were inadequate to cover fixed charges by $466.5 million. |