Exhibit 12
Statement of Computation of Ratio of Earnings to Fixed Charges
Six Months Ended June 30, | ||||||||
2009 | 2008 | |||||||
(000’s) | (000’s) | |||||||
Earnings: | ||||||||
Income (loss) from continuing operations attributable to MDC Partners Inc. | $ | 468 | $ | (1,937 | ) | |||
Additions: | ||||||||
Income tax expense | 2,223 | 4,193 | ||||||
Noncontrolling interest in income of consolidated subsidiaries | 1,365 | 5,167 | ||||||
Fixed charges, as shown below | 10,245 | 10,294 | ||||||
Distributions received from equity-method investees | — | — | ||||||
13,833 | 19,654 | |||||||
Subtractions: | ||||||||
Equity in income of investees | 198 | 221 | ||||||
Noncontrolling interest in earnings of consolidated subsidiaries that have not incurred fixed charges | — | — | ||||||
198 | 221 | |||||||
Earnings as adjusted | $ | 14,103 | $ | 17,496 | ||||
Fixed charges: | ||||||||
Interest on indebtedness, expensed or capitalized | 6,823 | 6,879 | ||||||
Amortization of debt discount and expense and premium on indebtedness, expensed or capitalized | 661 | 688 | ||||||
Interest within rent expense | 2,761 | 2,727 | ||||||
Total fixed charges | $ | 10,245 | $ | 10,294 | ||||
Ratio of earnings to fixed charges | 1.38 | 1.70 |