Exhibit 12
Statement of Computation of Ratio of Earnings to Fixed Charges
Nine Months Ended September 30, | ||||||||
2010 | 2009 | |||||||
(000’s) | (000’s) | |||||||
Earnings: | ||||||||
Income (loss) from continuing operations attributable to MDC Partners Inc. | $ | (25,499 | ) | $ | 767 | |||
Additions: | ||||||||
Income tax expense | 1,208 | 3,589 | ||||||
Noncontrolling interest in income of consolidated subsidiaries | 4,503 | 3,726 | ||||||
Fixed charges, as shown below | 28,610 | 15,303 | ||||||
Distributions received from equity-method investees | 249 | 139 | ||||||
34,570 | 22,757 | |||||||
Subtractions: | ||||||||
Equity in income (loss) of investees | (1,639 | ) | 258 | |||||
Noncontrolling interest in earnings of consolidated subsidiaries that have not incurred fixed charges | — | — | ||||||
(1,639 | ) | 258 | ||||||
Earnings as adjusted | $ | 10,710 | $ | 23,266 | ||||
Fixed charges: | ||||||||
Interest on indebtedness, expensed or capitalized | 22,758 | 10,297 | ||||||
Amortization of debt discount and expense and premium on indebtedness, expensed or capitalized | 1,582 | 979 | ||||||
Interest within rent expense | 4,270 | 4,027 | ||||||
Total fixed charges | $ | 28,610 | $ | 15,303 | ||||
Ratio of earnings to fixed charges | N/A | 1.52 | ||||||
Fixed charge deficiency | 17,900 | N/A |