Exhibit 12.1 | |||||||||||||||||||
STATEMENT RE COMPUTATION OF RATIOS | |||||||||||||||||||
Nine Months Ended | Year Ended December 31, | ||||||||||||||||||
September 30, 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||
(in thousands, except ratios) | |||||||||||||||||||
Earnings: | |||||||||||||||||||
Pre-tax income (loss) | $ | 26,339 | $ | (32,580 | ) | $ | 52,235 | $ | 27,528 | $ | (9,406 | ) | $ | 17,899 | |||||
Less: income (loss) from equity investees | (59 | ) | 358 | 33 | 82 | - | 79 | ||||||||||||
26,398 | (32,938 | ) | 52,202 | 27,446 | (9,406 | ) | 17,820 | ||||||||||||
Fixed charges (1): | |||||||||||||||||||
Interest expense, gross (2) | 65,366 | 89,965 | 17,785 | 18,944 | 13,145 | 2,638 | |||||||||||||
Interest portion of rent expense | 3,979 | 4,098 | 2,241 | 2,512 | 2,696 | 2,661 | |||||||||||||
a) Fixed charges | 69,345 | 94,063 | 20,026 | 21,456 | 15,841 | 5,299 | |||||||||||||
b) Earnings for ratio (3) | $ | 95,743 | $ | 61,125 | $ | 72,228 | $ | 48,902 | $ | 6,435 | $ | 23,119 | |||||||
Ratios: | |||||||||||||||||||
Earnings to fixed charges (b/a) | 1.4 | - | (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 for ratio consist of income from continuing operations before income taxes, less income (loss) from equity investees, plus fixed charges. | ||||||||||||||||||
(4) | Due to Itron's losses in the years ended December 31, 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. |