EX-12.1 2 y37844exv12w1.htm EX-12.1: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES EX-12.1
 

EXHIBIT 12.1
 
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
 
                                                 
    Holdings  
                       
    Years Ended June 30,       Pro forma
for the
Year Ended
 
    2003     2004     2005     2006     2007       June 30, 2007
 
    (amounts in thousands)  
Earnings:
                                               
Pretax income (loss) from continuing operations
  $ 8,188     $ 4,874     $ (12,148 )   $ (225,042 )   $ (96,866 )   $ (80,658 )
Fixed charges
    40,191       43,778       49,409       55,837       58,644       42,717  
Distributions received from unconsolidated partnerships
    1,009       2,054       2,621       3,387       3,158       3,158  
Less-equity in earnings of unconsolidated partnerships
    1,744       2,181       2,613       (3,072 )     (3,030 )     (3,030 )
                                                 
Total earnings
  $ 47,644     $ 48,525     $ 37,269     $ (168,890 )   $ (38,094 )   $ (37,813 )
                                                 
Fixed Charges:
                                               
Interest expense
  $ 37,738     $ 40,936     $ 45,558     $ 51,770     $ 53,660     $ 37,733  
Interest factor of rental expense
    2,453       2,842       3,851       4,067       4,984       4,984  
                                                 
Total fixed charges
  $ 40,191     $ 43,778     $ 49,409     $ 55,837     $ 58,644     $ 42,717  
                                                 
Ratio of Earnings to Fixed Charges
    1.2 x     1.1 x                        
 
The ratio of earnings to fixed charges is unaudited for all periods presented. For purpose of calculating this ratio, earnings consist of net income (loss) plus income taxes and fixed charges. Fixed charges consist of interest expense and the estimated portion of rental expense deemed a reasonable approximation of this interest factor. For the year ended June 30, 2007 on an actual and pro forma basis to give pro forma effect to the issuance of $15 million in principal amount of additional notes and the plan of reorganization as if they had been completed on July 1, 2006, we had a deficiency of earnings to fixed charges of approximately $96.7 million and $80.5 million, respectively. For the years ended June 30, 2006 and 2005 we had a deficiency of earnings to fixed charges of approximately $224.8 million and $12.1 million, respectively.