EXHIBIT 12
FLOTEK INDUSTRIES, INC.
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
(unaudited, in thousands, except for ratio)
Year ended December 31, | ||||||||||||||||||||
2007 | 2008 | 2009 | 2010 | 2011 | ||||||||||||||||
COMPUTATION OF EARNINGS: | ||||||||||||||||||||
Income (loss) from continuing operations | ||||||||||||||||||||
before income taxes | $ | 27,141 | $ | (44,741 | ) | $ | (48,317 | ) | $ | (49,010 | ) | $ | 39,270 | |||||||
Add: | ||||||||||||||||||||
Fixed charges less capitalized interest | 3,738 | 14,377 | 16,164 | 20,073 | 16,691 | |||||||||||||||
Subtract: | ||||||||||||||||||||
Minority interest in pretax income of | ||||||||||||||||||||
subsidiaries that have not incurred fixed | ||||||||||||||||||||
charges | (916) | - | - | - | - | |||||||||||||||
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Earnings (loss), as defined | $ | 29,963 | $ | (30,364) | $ | (32,153) | $ | (28,937) | $ | 55,961 | ||||||||||
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COMPUTATION OF FIXED CHARGES | ||||||||||||||||||||
AND PREFERRED STOCK | ||||||||||||||||||||
DIVIDENDS: | ||||||||||||||||||||
Interest expense including capitalized | ||||||||||||||||||||
interest | $ | 3,501 | $ | 13,894 | $ | 15,524 | $ | 19,399 | $ | 16,019 | ||||||||||
Estimate of interest within rental | ||||||||||||||||||||
expense(1) | 237 | 483 | 640 | 674 | 731 | |||||||||||||||
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Fixed charges, as defined | 3,738 | 14,377 | 16,164 | 20,073 | 16,750 | |||||||||||||||
Dividends on preferred stock and | ||||||||||||||||||||
accretion of discount(2) | - | - | 2,231 | 6,543 | 6,086 | |||||||||||||||
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Combined fixed charges, preferred stock | ||||||||||||||||||||
dividends and accretion of discount | $ | 3,738 | $ | 14,377 | $ | 18,395 | $ | 26,616 | $ | 22,836 | ||||||||||
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Ratio of earnings to fixed charges | 8.02 | N/A | N/A | N/A | 3.34 | |||||||||||||||
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Deficiency of earnings to cover fixed | ||||||||||||||||||||
charges | N/A | $ | (44,741 | ) | $ | (48,317 | ) | $ | (49,010 | ) | N/A | |||||||||
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Ratio of earnings to fixed charges and | ||||||||||||||||||||
preferred stock dividends | 8.02 | N/A | N/A | N/A | 2.45 | |||||||||||||||
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Deficiency of earnings to cover combined | ||||||||||||||||||||
fixed charges and preferred stock | ||||||||||||||||||||
dividends | N/A | $ | (44,741 | ) | $ | (50,548 | ) | $ | (55,553 | ) | N/A | |||||||||
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(1) | One third of rental expense is deemed to be representative of interest. |
(2) | Includes amount of pre-tax earnings required to cover dividends on preferred stock and accretion of discount. Amount has not been grossed up to a pre-tax amount in years in which losses occurred due to a negative effective tax rate. |