Exhibit 12.1
STATEMENT RE COMPUTATION OF RATIOS
Six Months Ended | Year Ended December 31, | |||||||||||||||||||||||
June 30, 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | |||||||||||||||||||
(in thousands, except ratios) | ||||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
Pre-tax income (loss)(5) | $ | (26,811 | ) | $ | 18,582 | $ | (43,550 | ) | $ | 47,594 | $ | 27,528 | $ | (9,406 | ) | |||||||||
Less: income from equity investees | 90 | 93 | 358 | 33 | 82 | - | ||||||||||||||||||
(26,901 | ) | 18,489 | (43,908 | ) | 47,561 | 27,446 | (9,406 | ) | ||||||||||||||||
Fixed charges (1): | ||||||||||||||||||||||||
Interest expense, gross (2) (5) | 33,244 | 94,177 | 100,935 | 22,426 | 18,944 | 13,145 | ||||||||||||||||||
Interest portion of rent expense | 2,631 | 5,163 | 4,098 | 2,241 | 2,512 | 2,696 | ||||||||||||||||||
a) Fixed charges | 35,875 | 99,340 | 105,033 | 24,667 | 21,456 | 15,841 | ||||||||||||||||||
b) Earnings for ratio (3) | $ | 8,974 | $ | 117,829 | $ | 61,125 | $ | 72,228 | $ | 48,902 | $ | 6,435 | ||||||||||||
Ratios: | ||||||||||||||||||||||||
Earnings to fixed charges (b/a) | - | (4) | 1.2 | - | (4) | 2.9 | 2.3 | - | (4) | |||||||||||||||
Deficit of earnings to fixed charges | $ | (26,901 | ) | $ | - | $ | (43,908 | ) | $ | - | $ | - | $ | (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 six months ended June 30, 2009, and the years ended December 31, 2007 and 2004, the ratio coverage was less than 1:1. Additional earnings of $26,901, $43,908, and $9,406 would have been needed to achieve a coverage of 1:1 in each of those respective periods. |
(5) | On January 1, 2009, we adopted FSP 14-1 and applied it retrospectively to all periods for which our convertible debt was outstanding. Our convertible notes were issued in August 2006. Therefore, pre-tax income (loss) and interest expense, gross reflect this restatement beginning in the year ended December 31, 2006. Refer to Note 1 of the condensed consolidated financial statements for further disclosure of the adoption of FSP 14-1. |