EX-12 2 a09-12041_2ex12.htm EX-12

Exhibit 12

 

NCO Group, Inc.

Ratio of Earnings to Fixed Charges

(in thousands, except for ratios)

 

 

 

For the Three Months Ended

 

 

 

March 31,

 

 

 

2009(1)

 

2008(1)

 

Earnings:

 

 

 

 

 

Add:

 

 

 

 

 

Loss before income taxes and noncontrolling interest

 

$

(3,825

)

$

(12,805

)

Fixed charges

 

28,688

 

27,397

 

Amortization of capitalized interest

 

3

 

3

 

 

 

24,866

 

14,595

 

Subtract:

 

 

 

 

 

Distributions to noncontrolling interest holders

 

2,317

 

3,347

 

 

 

2,317

 

3,347

 

Earnings

 

$

22,549

 

$

11,248

 

 

 

 

 

 

 

Fixed Charges:

 

 

 

 

 

Interest expense

 

$

23,110

 

$

22,407

 

Portion of rentals deemed to be interest

 

5,578

 

4,990

 

 

 

$

 28,688

 

$

27,397

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

0.8

x

0.4

x

 

(1)           For the three months ended March 31, 2009 and 2008, the Company’s ratio of earnings to fixed charges indicated a less than one-to-one coverage. The deficiency was a result of earnings that were $6.1 million and $16.1 million, respectively, less than fixed charges.