Exhibit 12
Statement of Computation of Ratio of Earnings to Fixed Charges
Nine Months Ended September 30, | ||||||||
2009 | 2008 | |||||||
(000’s) | (000’s) | |||||||
Earnings: | ||||||||
Income from continuing operations attributable to MDC Partners Inc. | $ | 503 | $ | 2,084 | ||||
Additions: | ||||||||
Income tax expense | 3,373 | 6,415 | ||||||
Noncontrolling interest in income of consolidated subsidiaries | 3,569 | 6,533 | ||||||
Fixed charges, as shown below | 15,326 | 15,282 | ||||||
Distributions received from equity-method investees | 139 | 68 | ||||||
22,407 | 28,298 | |||||||
Subtractions: | ||||||||
Equity in income of investees | 258 | 290 | ||||||
Noncontrolling interest in earnings of consolidated subsidiaries that have not incurred fixed charges | — | — | ||||||
258 | 290 | |||||||
Earnings as adjusted | $ | 22,652 | $ | 30,092 | ||||
Fixed charges: | ||||||||
Interest on indebtedness, expensed or capitalized | 10,297 | 10,104 | ||||||
Amortization of debt discount and expense and premium on indebtedness, expensed or capitalized | 979 | 1,036 | ||||||
Interest within rent expense | 4,050 | 4,142 | ||||||
Total fixed charges | $ | 15,326 | $ | 15,282 | ||||
Ratio of earnings to fixed charges | 1.48 | 1.97 |