Exhibit 12.1
Earnings consist of income (loss) from continuing operations before income tax, cumulative effect of changes in accounting principles, and fixed charges. Fixed charges consist of interest and financing expense, amortization of deferred financing costs, and the interest component of operating leases, estimated to be one third of rent expense.
For the years ended December 31, 2008, 2007 and 2006, the six month transition period from July 1, 2005 to December 31, 2005, and the years ended June 30, 2005 and 2004, our ratio of earnings to fixed charges was less than one. For the years ended December 31, 2008, 2007, and 2006, our earnings were less than our fixed charges by approximately $483 million, $144 million, and $21 million, respectively. For the transition period from July 1, 2005 to December 31, 2005, our earnings were less than our fixed charges by approximately $27 million. For the years ended June 30, 2005 and 2004, our earnings were less than our fixed charges by approximately $11 million and $12 million, respectively.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Six Months Ended | ||||||||||||||||||||||||
Fiscal Years Ended December 31, | December 31, 2005 | Fiscal Years Ended June 30, | ||||||||||||||||||||||
2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Earnings | ||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | (479,991 | ) | (143,952 | ) | (20,579 | ) | (27,205 | ) | (11,371 | ) | (12,150 | ) | |||||||||||
Fixed charges | 46,015 | 32,280 | 27,173 | 9,218 | 8,120 | 1,800 | ||||||||||||||||||
Undistributed equity method (income) loss | (2,909 | ) | 393 | — | — | — | — | |||||||||||||||||
Income (loss) before income taxes and fixed charges | $ | (436,885 | ) | (111,279 | ) | 6,594 | (17,987 | ) | (3,251 | ) | (10,350 | ) | ||||||||||||
Fixed Charges | ||||||||||||||||||||||||
Interest and financing costs | $ | 46,015 | 32,280 | 27,173 | 9,218 | 8,120 | 1,800 | |||||||||||||||||
Total fixed charges | $ | 46,015 | 32,280 | 27,173 | 9,218 | 8,120 | 1,800 | |||||||||||||||||
Ratio of earnings (loss) to fixed charges (1) | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||
Amount of the deficiency | $ | 482,900 | 143,559 | 20,579 | 27,205 | 11,371 | 12,150 | |||||||||||||||||
(1) Fixed charges exceed earnings in each of the periods presented.