Exhibit 12.1
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
Three months ended | ||||||||||||||||||||||||
Year Ended December 31, | March 31, | |||||||||||||||||||||||
(in thousands) | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | ||||||||||||||||||
Computation of Earnings: | ||||||||||||||||||||||||
Pre-tax earnings from continuing operations, excluding equity in earnings of unconsolidated affiliates | $ | 206,128 | $ | 208,240 | $ | 222,654 | $ | 262,222 | $ | 305,376 | $ | 72,632 | ||||||||||||
Plus: Fixed charges | 9,821 | 15,636 | 17,813 | 19,686 | 32,542 | 7,708 | ||||||||||||||||||
Plus: Amortization of capitalized interest | 148 | 142 | 121 | 115 | 91 | 22 | ||||||||||||||||||
Plus: Distributed earnings from equity investees | — | — | 800 | 1,830 | 3,073 | 90 | ||||||||||||||||||
Less: Capitalized interest | 66 | 54 | 85 | 43 | 24 | — | ||||||||||||||||||
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Earnings | $ | 216,031 | $ | 223,964 | $ | 241,303 | $ | 283,810 | $ | 341,058 | $ | 80,452 | ||||||||||||
Fixed Charges: | ||||||||||||||||||||||||
Interest expense and amortization of deferred financing costs on all indebtedness | $ | 7,751 | $ | 13,471 | $ | 15,327 | $ | 16,967 | $ | 29,538 | $ | 6,963 | ||||||||||||
Capitalized interest | 66 | 54 | 85 | 43 | 24 | — | ||||||||||||||||||
Estimate of interest component of rental expenses | 2,004 | 2,111 | 2,401 | 2,676 | 2,980 | 745 | ||||||||||||||||||
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Fixed charges | $ | 9,821 | $ | 15,636 | $ | 17,813 | $ | 19,686 | $ | 32,542 | $ | 7,708 | ||||||||||||
| 22.0
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| 14.3
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| 13.5
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| 14.4
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| 10.5
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| 10.4
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Pro Forma Adjustments: | ||||||||||||||||||||||||
Fixed Charges from above | 32,542 | 7,708 | ||||||||||||||||||||||
Estimated net increase in interest and amortization expense from the New Term Loan Facility and Debt Securities | 100,784 | 25,555 | ||||||||||||||||||||||
Estimated dividends paid for 5.250% Mandatory Convertible Preferred Stock, Series A-1 | 7,875 | 1,969 | ||||||||||||||||||||||
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Total Pro Forma fixed charges | 141,201 | 35,232 | ||||||||||||||||||||||
Earnings from above | 341,058 | 80,452 | ||||||||||||||||||||||
Pro Forma Sheridan Earnings | 34,833 | 2,743 | ||||||||||||||||||||||
Pro Forma Fixed Charges | 141,201 | 35,232 | ||||||||||||||||||||||
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Total Pro Forma Earnings | 517,091 | 118,427 | ||||||||||||||||||||||
Pro Forma Ratio of earnings to fixed charges (a) | 3.7x | 3.4x |
(a) | In calculating this pro forma ratio, as adjusted, of earnings to combined fixed charges and preferred stock dividends, we have assumed that (i) the shares of 5.250% Mandatory Convertible Preferred Stock, Series A-1 were issued on January 1, 2013, and (ii) the New Term Loan Facility and Debt Securities were issued on January 1, 2013. For purposes of this pro forma calculation, we have assumed the repayment of outstanding borrowings under our revolving credit facility and our Senior Secured Notes due 2020 with the combined net proceeds from this offering and the Debt Securities Offering (or a portion of such borrowings, to the extent such borrowings exceeded the combined net proceeds from both offerings). Therefore, the pro forma ratio, as adjusted, reflects the effects of additional preferred stock dividends, additional interest expense that would have been incurred on the New Term Loan Facility and Debt Securities and lower interest expense resulting from the assumed repayment of borrowings under our revolving credit facility and our Senior Secured Notes due 2020 to the extent of the combined net proceeds from both offerings. |