Exhibit 12
Statement of Computation of Ratio of Earnings to Fixed Charges
Six Months Ended | ||||||||
June 30, | ||||||||
2013 | 2012 | |||||||
(000’s) | (000’s) | |||||||
Earnings: | ||||||||
Loss from continuing operations attributable to MDC Partners Inc. | $ | (31,506 | ) | $ | (42,810 | ) | ||
Additions: | ||||||||
Income tax expense (benefit) | (12,523 | ) | 3,807 | |||||
Noncontrolling interest in income of consolidated subsidiaries | 2,500 | 3,307 | ||||||
Fixed charges, as shown below | 84,842 | 28,505 | ||||||
Distributions received from equity-method investees | 3,096 | 166 | ||||||
77,915 | 35,785 | |||||||
Subtractions: | ||||||||
Equity in income (loss) of investees | 123 | 306 | ||||||
Noncontrolling interest in earnings of consolidated subsidiaries that have not incurred fixed charges | — | — | ||||||
123 | 306 | |||||||
Earnings as adjusted | $ | 46,286 | $ | (7,331 | ) | |||
Fixed charges: | ||||||||
Interest on indebtedness, expensed or capitalized | 72,088 | 21,697 | ||||||
Amortization of debt discount and expense and premium on indebtedness, expensed or capitalized | 6,303 | 1,129 | ||||||
Interest within rent expense | 6,451 | 5,679 | ||||||
Total fixed charges | $ | 84,842 | $ | 28,505 | ||||
Ratio of earnings to fixed charges | N/A | N/A | ||||||
Fixed charge deficiency | $ | 38,556 | 35,836 |