Exhibit 12.1
Statement of Computation of Ratios of Earnings to Fixed Charges and Earnings to Combined Fixed Fixed Charges and Preference Share Dividends
| Nine Months Ended September 30, | Year Ended December 31, | |||||||||||||||||||||||
| 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||
| (000's) | (000's) | (000's) | (000's) | (000's) | (000's) | |||||||||||||||||||
| Earnings: | ||||||||||||||||||||||||
| Income (loss) from continuing operationss attributable to MDC Partners Inc. | $ | 19,180 | $ | (45,839 | ) | $ | (29,173 | ) | $ | (151 | ) | $ | (139,663 | ) | $ | (80,311 | ) | |||||||
| Additions: | ||||||||||||||||||||||||
| Income tax expense (benefit) | 17,659 | (9,404 | ) | 3,761 | 9,776 | (4,367 | ) | 9,553 | ||||||||||||||||
| Net income attributable to noncontrolling interests | 6,588 | 5,218 | 9,054 | 6,890 | 6,461 | 6,863 | ||||||||||||||||||
| Fixed charges, as shown below | 64,161 | 117,055 | 73,184 | 69,001 | 113,188 | 55,453 | ||||||||||||||||||
| Distributions received from equity-method investments | - | 123 | 652 | 726 | 3,096 | 1,288 | ||||||||||||||||||
| 88,408 | 112,992 | 86,651 | 86,393 | 118,378 | 73,157 | |||||||||||||||||||
| Subtractions: | ||||||||||||||||||||||||
| Equity in earnings (loss) of non-consolidated affiliates | 1,924 | (309 | ) | 1,058 | 1,406 | 281 | 633 | |||||||||||||||||
| Earnings as adjusted | $ | 105,664 | $ | 67,462 | $ | 56,420 | $ | 84,836 | $ | (21,566 | ) | $ | (7,787 | ) | ||||||||||
| Fixed charges: | ||||||||||||||||||||||||
| Interest on indebtedness, expensed or capitalized | 46,841 | 90,021 | 55,633 | 53,018 | 92,936 | 42,003 | ||||||||||||||||||
| Amortization of debt discount and expense and premium on indebtedness, expensed or capitalized | 2,018 | 9,135 | 2,270 | 2,247 | 7,762 | 2,249 | ||||||||||||||||||
| Interest within rent expense | 15,302 | 17,899 | 15,281 | 13,736 | 12,490 | 11,201 | ||||||||||||||||||
| Total fixed charges | $ | 64,161 | $ | 117,055 | $ | 73,184 | $ | 69,001 | $ | 113,188 | $ | 55,453 | ||||||||||||
| Ratio of earnings to fixed charges and earnings to combined fixed charges and preference share dividends(1) | 1.65 | N/A | N/A | 1.23 | N/A | N/A | ||||||||||||||||||
| Fixed charge deficiency | N/A | $ | 49,593 | $ | 16,764 | N/A | $ | 134,754 | $ | 63,240 | ||||||||||||||
(1) Our ratios of earnings to combined fixed charges and preference share dividends are the same as our ratios of earnings to fixed charges for each of the five years ended December 31, 2016 because we had no preference shares outstanding during such periods. During the first quarter of 2017, we issued and sold 95,000 Series 4 Convertible Preference Shares in a private placement. Our ratio of earnings to combined fixed charges and preference share dividends is the same as our ratio of earnings to fixed charges for the nine months ended September 30, 2017 because no dividends were declared or paid on preference shares during such period.
