EX-12.1 2 a10-18753_1ex12d1.htm EX-12.1

Exhibit 12.1

 

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

EPIQ SYSTEMS, INC.

(In Thousands, except for Ratio)

 

 

 

Nine Months
Ended
September 30,
 2010

 

2009

 

2008

 

2007

 

2006

 

2005

 

Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

10,788

 

$

14,595

 

$

13,836

 

$

6,929

 

$

35,131

 

$

(3,842

)

Income tax expense (benefit)

 

9,763

 

12,266

 

10,507

 

4,066

 

22,834

 

(2,400

)

Fixed charges

 

3,567

 

4,023

 

3,505

 

13,882

 

15,349

 

7,676

 

Earnings available for fixed charges

 

24,118

 

30,884

 

27,848

 

24,877

 

73,314

 

1,434

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Charges

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense *

 

853

 

1,160

 

1,331

 

10,980

 

12,023

 

5,662

 

Amortization of deferred loan charges

 

279

 

314

 

426

 

993

 

1,445

 

1,147

 

Estimated interest expense in leases

 

2,435

 

2,549

 

1,748

 

1,909

 

1,881

 

867

 

Total fixed charges

 

$

3,567

 

$

4,023

 

$

3,505

 

$

13,882

 

$

15,349

 

$

7,676

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of Earnings to Fixed Charges

 

6.8

 

7.7

 

7.9

 

1.8

 

4.8

 

0.2

 

 

* Interest included in fixed charges includes only interest on third party indebtedness and, accordingly, we have excluded accrued interest expense related to uncertain tax positions.

 

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.