Ratio of Earnings to Fixed Charges
CLEAN HARBORS, INC. AND SUBSIDIARIES
| | For the Year Ended December 31, | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | 2007 | 2006 | 2005 | 2004 | (Restated) 2003 | ||||||||||||
| | (Dollars in thousands) | ||||||||||||||||
| Income (loss) from operations before income taxes | $ | 72,238 | $ | 52,953 | $ | 29,116 | $ | 8,643 | $ | (12,212 | ) | ||||||
| Add (subtract): | |||||||||||||||||
| Capitalized interest | (1,179 | ) | (682 | ) | (91 | ) | (1,922 | ) | — | ||||||||
| Amortization of capitalized interest | 435 | 294 | 246 | 24 | — | ||||||||||||
| Fixed charges (see calculation below) | 22,897 | 20,259 | 26,803 | 31,985 | 29,496 | ||||||||||||
| Income (loss) from operations before income taxes as adjusted | $ | 94,391 | $ | 72,824 | $ | 56,074 | $ | 38,730 | $ | 17,284 | |||||||
Fixed charges: | |||||||||||||||||
| Interest expense, net | $ | 13,157 | $ | 12,447 | $ | 22,754 | $ | 22,297 | $ | 23,724 | |||||||
| Interest income | 4,023 | 3,589 | 1,403 | 692 | 1,003 | ||||||||||||
| Capitalized interest | 1,179 | 682 | 91 | 1,922 | — | ||||||||||||
| Amortization of capitalized interest | (435 | ) | (294 | ) | (246 | ) | (24 | ) | — | ||||||||
| Preferred stock dividend | 332 | 314 | 317 | 5,684 | 3,063 | ||||||||||||
| Portion of the operating lease rental expense deemed to be representative of the interest factor | 4,641 | 3,521 | 2,484 | 1,414 | 1,706 | ||||||||||||
| Fixed charges | $ | 22,897 | $ | 20,259 | $ | 26,803 | $ | 31,985 | $ | 29,496 | |||||||
Ratio of earnings to fixed charges(1) | 4.1 | x | 3.6 | x | 2.1 | x | 1.2 | x | 0.6 | x | |||||||
