Exhibit 12.1
RATIO OF EARNINGS TO FIXED CHARGES
We have computed the ratio of earnings to fixed charges for each of the following periods on a consolidated basis. For purposes of computing the ratio of earnings to fixed charges, “earnings” consist of pretax income (loss) from continuing operations before adjustment for noncontrolling interests in consolidated subsidiaries or income or loss from equity investees, plus distributed income of equity investees, plus fixed charges (excluding capitalized interest). “Fixed charges” represent interest incurred (whether expensed or capitalized), amortization of debt expense and that portion of rental expense on operating leases deemed to be the equivalent of interest. You should read the ratio of earnings to fixed charges in conjunction with our consolidated and condensed financial statements included in our most recent Quarterly Report on Form 10-Q and Annual Report on Form 10-K.
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| | | Quarter Ended March 31, | | | | |
| | | Year Ended December 31, | |
| | | 2016 | | | 2015 | | | 2014 | | | 2013 | | | 2012 | | | 2011 | |
| | | | | | (Dollars in thousands) | |
Earnings: | | | | | | | | | | | | | | | | | | | | | | | | |
Income (loss) before income taxes | | $ | (37,111 | ) | | $ | (478,170 | ) | | $ | 262,521 | | | $ | 143,588 | | | $ | (125,961 | ) | | $ | 1,050 | |
Deduct (income) loss from equity investees | | | 123 | | | | 124,345 | | | | (879 | ) | | | (2,965 | ) | | | (8,434 | ) | | | (22,215 | ) |
Add distributed income of equity investees | | | 1,200 | | | | 7,000 | | | | 8,790 | | | | 12,260 | | | | 16,230 | | | | 26,180 | |
Less capitalized interest | | | (1,916 | ) | | | (11,042 | ) | | | (10,419 | ) | | | (10,419 | ) | | | (4,893 | ) | | | (1,277 | ) |
Add fixed charges | | | 16,487 | | | | 57,341 | | | | 52,135 | | | | 58,250 | | | | 91,598 | | | | 106,772 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | (21,217 | ) | | $ | (300,526 | ) | | $ | 312,148 | | | $ | 200,714 | | | $ | (31,460 | ) | | $ | 110,510 | |
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Fixed Charges: | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense, net of capitalized amounts | | $ | 11,128 | | | $ | 28,982 | | | $ | 22,645 | | | $ | 36,881 | | | $ | 77,938 | | | $ | 97,875 | |
Capitalized interest | | | 1,916 | | | | 11,042 | | | | 10,419 | | | | 10,419 | | | | 4,893 | | | | 1,277 | |
Interest portion of rent expense | | | 3,443 | | | | 17,317 | | | | 19,071 | | | | 10,950 | | | | 8,767 | | | | 7,620 | |
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Total fixed charges | | $ | 16,487 | | | $ | 57,341 | | | $ | 52,135 | | | $ | 58,250 | | | $ | 91,598 | | | $ | 106,772 | |
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Ratio of Earnings to Fixed Charges | | | — | (a) | | | — | (a) | | | 6.0 | | | | 3.4 | | | | — | (a) | | | 1.0 | |
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| (a) | For the quarter ended March 31, 2016 and the years ended December 31, 2015 and 2012, Helix recorded losses. As a result, Helix’s ratio coverage was less than 1:1. Helix would have needed to generate additional earnings of $37.7 million in the quarter ended March 31, 2016, $357.9 million in 2015 and $123.1 million in 2012 to achieve coverage of 1:1 in each of those periods. |
