EX-12 3 dex12.txt COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES EXHIBIT 12 ENCOMPASS SERVICES CORPORATION AND SUBSIDIARIES COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES (in thousands, except ratios) (Unaudited)
Nine months ended Years ended December 31, September 30, ------------------------------------- ----------------- 1996 1997 1998 1999 2000 2000 2001 ---- ------ ------- -------- -------- -------- -------- Earnings available for fixed charges: Income from continuing operations before income tax provision............. $428 $1,537 $83,583 $ 95,089 $117,340 $ 77,114 $ 36,702 Fixed Charges.......... 395 321 3,587 39,651 102,126 74,606 75,322 ---- ------ ------- -------- -------- -------- -------- Total................ $823 $1,858 $87,170 $134,740 $219,466 $151,720 $112,024 ==== ====== ======= ======== ======== ======== ======== Fixed Charges: Interest expense (a)... $224 $ 208 $ 1,054 $ 35,618 $ 88,101 $ 63,717 $ 63,157 Interest portion of rent expense (b)...... 171 113 2,533 4,033 14,025 10,889 12,165 ---- ------ ------- -------- -------- -------- -------- Total................ $395 $ 321 $ 3,587 $ 39,651 $102,126 $ 74,606 $ 75,322 ==== ====== ======= ======== ======== ======== ======== Ratio of earnings to fixed charges.......... 2.08 5.79 24.30 3.40 2.15 2.03 1.49
-------- (a) Includes amortization of deferred debt issuance costs and original issue discount. (b) Interest portion of rent expense is estimated at one-third of rent expense.