EX-12.1 3 y31806exv12w1.htm EX-12.1: STATEMENT RE: COMPUTATION OF RATIOS EX-12.1
 

Exhibit 12.1
 
LORAL SPACE & COMMUNICATIONS INC.
COMPUTATION OF DEFICIENCY OF EARNINGS TO COVER FIXED CHARGES
 
                                                         
    Successor Registrant       Predecessor Registrant                  
          For the Period
 		      For the Period
 		                         
          October 2,
 		      January 1,
 		                         
    Year Ended
 		    2005 to
 		      2005 to
 		      Year Ended
 		      Year Ended
 		      Year Ended
 		 
    December 31,
 		    December 31,
 		      October 1,
 		      December 31,
 		      December 31,
 		      December 31,
 		 
    2006     2005       2005(3)       2004       2003       2002  
Income (loss) from continuing operations before income taxes, equity income (losses) in affiliates and minority interest
  $ 30,117     $ (5,395 )     $ (65,570 )     $ (207,852 )     $ (368,355 )     $ (237,540 )
Plus fixed charges:
                                                       
Interest expense
    25,961       4,408         3,982         3,904         28,223         51,185  
Interest component of rent expense(1)
    6,824       1,625         4,949         9,059         10,402         15,380  
Less: capitalized interest
    (2,512 )     —         —         (957 )       (14.143 )       (10,293 )
                                                         
Earnings available to cover fixed charges
  $ 60,390     $ 638       $ (56,639 )     $ (195,846 )     $ (343,873 )     $ (181,268 )
                                                         
Fixed charges(2)
  $ (73,767 )   $ (8,700 )     $ (8,931 )     $ (12,963 )     $ (45,345 )     $ (155,751 )
                                                         
Deficiency of earnings to cover fixed charges
  $ 13,377     $ 8,062       $ 65,570       $ 208,809       $ 389,218       $ 337,019  
                                                         
 
 
(1) The interest component of rent expense is deemed to be approximately 25% of total rent expense.
 
(2) For 2006, dividends on the Loral Skynet Preferred Stock have been grossed-up using a normalized effective tax rate of 39.5%.
 
(3) Does not reflect the effect of the gain on the discharge of pre-petition obligations and fresh-start adjustments, and the interest expense and income tax benefit recognized in connection with the Plan of Reorganization.