EX-12.1 4 a07-5472_1ex12d1.htm EX-12.1

Exhibit 12.1

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

EPIQ SYSTEMS, INC.

(In Thousands, except for Ratio)

 

 

Year Ended December 31,

 

 

 

2006

 

2005

 

2004

 

Earnings (Loss)

 

 

 

 

 

 

 

income (loss) from continuing operations

 

$

35,131

 

$

(3,842

)

$

(7,290

)

tax expense (benefit) related to continuing operations

 

22,834

 

(2,400

)

(4,313

)

pre-tax earnings (loss)

 

57,965

 

(6,242

)

11,603

)

Plus

 

 

 

 

 

 

 

fixed charges

 

15,349

 

7,676

 

7,176

 

amortization of capitalized interest

 

—

 

—

 

—

 

distributed income - equity investees

 

—

 

—

 

—

 

share of pre-tax losses of equity investees

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

Less

 

 

 

 

 

 

 

capitalized interest

 

—

 

—

 

—

 

preference dividends of consolidated subs

 

—

 

—

 

—

 

minority interest in subs pre-tax income

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

Total Earnings (Loss)

 

73,314

 

1,434

 

(4,427

)

 

 

 

 

 

 

 

 

Fixed Charges

 

 

 

 

 

 

 

Interest expensed

 

12,023

 

5,662

 

4,223

 

Interest capitalized

 

—

 

—

 

—

 

amortized deferred loan charges

 

1,445

 

1,147

 

2,120

 

estimated interest expense in leases

 

1,881

 

867

 

833

 

preference dividends of consolidated subs

 

—

 

—

 

—

 

Total Fixed Charges

 

15,349

 

7,676

 

7,176

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

4.8

 

0.2

 

n/a

 

 

For the year ended December 31, 2005, our earnings to fixed charges ratio was less than one to one coverage.  The amount of such deficiency was $6,242.

For the year ended December 31, 2004, we had a total loss.  Accordingly, our earnings to fixed charges ratio was less than one to one coverage.  The amount of such deficiency was $11,603.