Exhibit 12.1 | ||||||||||||||||||||||||
STATEMENT RE COMPUTATION OF RATIOS | ||||||||||||||||||||||||
Six Months Ended | Year Ended December 31, | |||||||||||||||||||||||
June 30, 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||||||||||||
(in thousands, except ratios) | ||||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
Pre-tax income (loss) | $ | 16,969 | $ | (32,580 | ) | $ | 52,235 | $ | 27,528 | $ | (9,406 | ) | $ | 17,899 | ||||||||||
Less: income (loss) from equity investees | (59 | ) | 358 | 33 | 82 | - | 79 | |||||||||||||||||
17,028 | (32,938 | ) | 52,202 | 27,446 | (9,406 | ) | 17,820 | |||||||||||||||||
Fixed charges (1): | ||||||||||||||||||||||||
Interest expense, gross (2) | 47,723 | 89,965 | 17,785 | 18,944 | 13,145 | 2,638 | ||||||||||||||||||
Interest portion of rent expense | 2,567 | 4,098 | 2,241 | 2,512 | 2,696 | 2,661 | ||||||||||||||||||
a) Fixed charges | 50,290 | 94,063 | 20,026 | 21,456 | 15,841 | 5,299 | ||||||||||||||||||
b) Earnings for ratio (3) | $ | 67,318 | $ | 61,125 | $ | 72,228 | $ | 48,902 | $ | 6,435 | $ | 23,119 | ||||||||||||
Ratios: | ||||||||||||||||||||||||
Earnings to fixed charges (b/a) | 1.3 | - | (4) | 3.6 | 2.3 | - | (4) | 4.4 | ||||||||||||||||
Deficit of earnings to fixed charges | $ | - | $ | (32,938 | ) | - | - | $ | (9,406 | ) | - | |||||||||||||
(1) | Fixed charges consist of interest on indebtedness and amortization of debt issuance costs plus that portion of lease rental expense representative of the interest factor. | |||||||||||||
(2) | Interest expense, gross includes amortization of prepaid debt fees and discount. | |||||||||||||
(3) | Earnings consist of income from continuing operations before income taxes plus fixed charges. | |||||||||||||
(4) | Due to Itron's losses in 2007 and 2004, the ratio coverage was less than 1:1. Additional earnings of $32,938 and $9,406 would have been needed | |||||||||||||
to achieve a coverage of 1:1 in each of those respective years. |