Exhibit 12
Statement of Computation of Ratio of Earnings to Fixed Charges
Twelve Months Ended December 31, | ||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||
Earnings: | ||||||||||||||||||||
Income (Loss) from continuing operations attributable to MDC Partners Inc. | $ | (83,313 | ) | $ | (11,491 | ) | $ | (15,144 | ) | $ | 11,044 | $ | (17,783 | ) | ||||||
Additions: | ||||||||||||||||||||
Income taxes (recovery) | 41,735 | (165 | ) | 8,536 | 2,397 | 6,081 | ||||||||||||||
Noncontrolling interest in earnings of consolidated subsidiaries | 7,754 | 10,074 | 5,566 | 8,300 | 20,474 | |||||||||||||||
Fixed charges, as shown below | 50,633 | 39,506 | 27,360 | 20,493 | 18,966 | |||||||||||||||
Distributions received from equity-method investees | 4,584 | 638 | 198 | 440 | — | |||||||||||||||
104,706 | 50,053 | 41,660 | 31,630 | 45,521 | ||||||||||||||||
Subtractions: | ||||||||||||||||||||
Equity in income (loss) of investees | 213 | 866 | (8 | ) | 349 | 165 | ||||||||||||||
Noncontrolling interest in earnings of consolidated subsidiaries that have not incurred fixed charges | — | — | — | — | — | |||||||||||||||
213 | 866 | (8 | ) | 349 | 165 | |||||||||||||||
Earnings as adjusted | 21,180 | 37,696 | 26,524 | 42,325 | 27,573 | |||||||||||||||
Fixed charges: | ||||||||||||||||||||
Interest on indebtedness, expensed or capitalized | 39,747 | 31,351 | 18,057 | 13,650 | 11,471 | |||||||||||||||
Amortization of debt discount and expense and premium on indebtedness, expensed or capitalized | 2,175 | 2,136 | 4,041 | 1,348 | 2,330 | |||||||||||||||
Interest within rent expense | 8,711 | 6,019 | 5,262 | 5,495 | 5,165 | |||||||||||||||
Total fixed charges | $ | 50,633 | $ | 39,506 | $ | 27,360 | $ | 20,493 | $ | 18,966 | ||||||||||
Ratio of earnings to fixed charges | N/A | N/A | N/A | 2.07 | 1.45 | |||||||||||||||
Dollar amount deficiency | $ | 29,453 | $ | 1,810 | $ | 836 | N/A | N/A |