EXHIBIT 12.1
FLOTEK INDUSTRIES, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
Unaudited
(dollars in thousands)
| Year Ended December 31, | Three Months Ended March 31, 2010 | ||||||||||||||||||||
| 2005 | 2006 | 2007 | 2008 | 2009 | |||||||||||||||||
COMPUTATION OF EARNINGS: | |||||||||||||||||||||
Income (loss) from continuing operations before income taxes and fixed charges | $ | 9,373 | $ | 17,933 | $ | 27,141 | $ | (44,660 | ) | $ | (48,224 | ) | $ | (11,514 | ) | ||||||
Add: | |||||||||||||||||||||
Fixed charges | 881 | 1,121 | 3,738 | 14,296 | 16,071 | 4,394 | |||||||||||||||
Subtract: | |||||||||||||||||||||
Minority interest in pretax income of subsidiaries that have not incurred fixed charges | — | — | 916 | — | — | — | |||||||||||||||
Earnings (loss), as defined | $ | 10,254 | $ | 19,054 | $ | 29,963 | $ | (30,364 | ) | $ | (32,153 | ) | $ | (7,120 | ) | ||||||
COMPUTATION OF FIXED CHARGES AND PREFERRED STOCK DIVIDENDS: | |||||||||||||||||||||
Interest expense (no capitalized interest) | $ | 827 | $ | 1,005 | $ | 3,501 | $ | 13,813 | $ | 15,431 | $ | 4,218 | |||||||||
Estimate of interest within rental expense(1) | 54 | 116 | 237 | 483 | 640 | 176 | |||||||||||||||
Fixed charges, as defined | 881 | 1,121 | 3,738 | 14,296 | 16,071 | 4,394 | |||||||||||||||
Dividends on preferred stock and accretion of discount(2) | — | — | — | — | 2,231 | 2,628 | |||||||||||||||
Combined fixed charges, preferred stock dividends and accretion of discount | $ | 881 | $ | 1,121 | $ | 3,738 | $ | 14,296 | $ | 18,302 | $ | 7,022 | |||||||||
Ratio of earnings to fixed charges | 11.64 | 17.00 | 8.02 | N/A | N/A | N/A | |||||||||||||||
Deficiency of earnings to cover fixed charges | N/A | N/A | N/A | $ | (44,660 | ) | $ | (48,224 | ) | $ | (11,514 | ) | |||||||||
Ratio of earnings to fixed charges and preferred stock dividends | 11.64 | 17.00 | 8.02 | N/A | N/A | N/A | |||||||||||||||
Deficiency of earnings to cover combined fixed charges and preferred stock dividends | N/A | N/A | N/A | $ | (44,660 | ) | $ | (50,455 | ) | $ | (14,142 | ) | |||||||||
| (1) | One third of rental expense is deemed to be representative of interest. |
| (2) | Amount has not been grossed up to a pre-tax amount due to a negative effective tax rate. |