EX-12.1 4 tv481206_ex12-1.htm EXHIBIT 12.1

 

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.