EX-12 2 dex12.htm STATEMENT OF COMPUTATON Statement of Computaton

Exhibit 12

NCO Group, Inc.

Ratio of Earnings to Fixed Charges

(in thousands, except for ratios)

 

     For the Three Months
Ended September 30,		     For the Nine Months
Ended September 30,		  
     2008     2007     2008     2007  

Earnings:

         

Add:

         

(Loss) income before income taxes and minority interest

    $ (46,272 )   $ (6,313 )   $ (85,023 )   $ (8,920 )

Fixed charges

      30,791       27,562       87,048       80,073  

Amortization of capitalized interest

      3       3       9       8  
                                
     (15,478 )     21,252       2,034       71,161  

Subtract:

         

Interest capitalized

      —         —         25       —    

Distributions to minority holders

      3,603       1,488       9,234       5,480  
                                
     3,603       1,488       9,259       5,480  
                                

Earnings

    $ (19,081 )   $ 19,764     $ (7,225 )   $ 65,681  
                                

Fixed Charges:

         

Interest expense

    $ 24,982     $ 24,551     $ 70,392     $ 70,867  

Interest capitalized

      —         —         25       —    

Portion of rentals deemed to be interest

      5,809       3,011       16,631       9,206  
                                
   $ 30,791     $ 27,562     $ 87,048     $ 80,073  
                                

Ratio of earnings to fixed charges

      (0.6 )x     0.7 x     (0.1 )x     0.8 x