EX-12 2 dex12.htm STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Statement of Computation of Ratio of Earnings to Fixed Charges

Exhibit 12

NCO Group, Inc.

Ratio of Earnings to Fixed Charges

(in thousands, except for ratios)

 

     For the Three Months
Ended June 30,		     For the Six Months
Ended June 30,		  
     2008     2007     2008     2007  

Earnings:

         

Add:

         

Loss before income taxes and minority interest

    $ (25,946 )   $ (721 )   $ (38,751 )   $ (2,607 )

Fixed charges

      27,181       26,177       53,034       53,653  

Amortization of capitalized interest

      3       3       6       5  
                                
     1,238       25,459       14,289       51,051  

Subtract:

         

Capitalized interest

      25       —         25       —    

Distributions to minority holders

      2,284       3,245       5,631       3,992  
                                
     2,309       3,245       5,656       3,992  
                                

Earnings

    $ (1,071 )   $ 22,214     $ 8,633     $ 47,059  
                                

Fixed Charges:

         

Interest expense

    $ 23,003     $ 23,116     $ 45,410     $ 47,458  

Capitalized interest

      25       —         25       —    

Portion of rentals deemed to be interest

      4,153       3,061       7,599       6,195  
                                
   $ 27,181     $ 26,177     $ 53,034     $ 53,653  
                                

Ratio of earnings to fixed charges

      (0.0 )x     0.8x       0.2x       0.9x