EX-12.1 31 dex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of ratio of earnings to fixed charges

Exhibit 12.1

 

Statement Regarding Compution of Ratio of Earnings to Fixed Charges

 

     Fiscal Year Ended December 31,
     Nine months
Ended
September 30,
2004
  
     1999
     2000
     2001
     2002
     2003
    
     (dollars in thousands)  

Earnings

                                                 

Income (loss) from continuing operations before income taxes

    $ 26,070     $ 54,829     $ (4,743 )   $ (14,069 )   $ (27,833 )   $ (25,490 )

Equity in operations of equity investee

      (94 )     (121 )     (7 )     (93 )     (26 )     (77 )

Amortization of capitalized interest

      192       318       435       518       604       547  

Distributed income from equity investee

      —         125       —         —         125       —    

Interest capitalized

      (2,270 )     (4,215 )     (1,816 )     (2,449 )     (2,006 )     —    
    
 
 
 
 
 
       23,898       50,936       (6,131 )     (16,093 )     (29,136 )     (25,020 )

Fixed charges (1)

                                                 

Interest expense, as defined

      9,699       20,338       16,714       19,022       19,515       8,321  

Interest portion of rent expense

      347       419       645       570       568       575  
    
 
 
 
 
 
     $ 10,046     $ 20,757     $ 17,359     $ 19,592     $ 20,083     $ 8,896  
    
 
 
 
 
 

Earnings for ratio calculation (2)

    $ 33,944     $ 71,693     $ 11,228     $ 3,499     $ (9,053 )   $ (16,124 )

Ratio of earnings to fixed charges (3)

      3.4       3.5       N/A       N/A       N/A       N/A  

Deficiency of earnings to fixed charges

      N/A       N/A     $ (6,131 )   $ (16,093 )   $ (29,136 )   $ (25,020 )

 

(1) Fixed charges consist of interest expense (including interest expense relating to discontinued operations and capitalized interest) and that portion of rental expense the Company believes is representative of interest.

 

(2) Earnings for ratio calculation consists of net income (loss) from continuing operations before income taxes and before equity in operations of equity investee, plus estimated amortization of capitalized interest and distributed income from equitee investee, less interest capitalized, plus fixed charges.

 

(3) Due to the Company’s losses in the years ended December 31, 2001, 2002 and 2003 and the nine months ended September 30, 2004, the ratio coverage was less than 1:1. The Company would have had to generate additional earnings of $6,131, $16,093, $29,136 and $25,020, respectively, to achieve a coverage of 1:1.