EX-12.(A) 5 dex12a.htm STATEMENT RE COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Statement Re Computation of Ratio of Earnings to Fixed Charges

 

 

EXHIBIT 12(a)

 

 

UNITED RENTALS, INC.

STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

 

   

Year Ended December 31

  
   

1998

  

1999

  

2000

  

2001

  

2002(2)

  
   

(dollars in thousands)

  

Earnings:

                            

Income before provision for income taxes and extraordinary items

  

$

78,297

  

$

241,807

  

$

301,496

  

$214,550

  

$(101,384

)

Interest expense

  

 

64,157

  

 

139,828

  

 

228,779

  

221,563

  

195,961

 

Amortization of debt issuance costs

  

 

1,423

  

 

4,154

  

 

6,880

  

9,468

  

10,080

 

Interest portion of rent expense (1)

  

 

6,834

  

 

21,833

  

 

45,224

  

55,739

  

61,742

 

   
 
 
 
 

Earnings as adjusted

  

$

150,711

  

$

407,622

  

$

582,379

  

$501,320

  

$166,399

 

   
 
 
 
 

Fixed charges:

                            

Interest expense

  

$

64,157

  

$

139,828

  

$

228,779

  

$221,563

  

$195,961

 

Amortization of debt issuance costs

  

 

1,423

  

 

4,154

  

 

6,880

  

9,468

  

10,080

 

Interest portion of rent expense (1)

  

 

6,834

  

 

21,833

  

 

45,224

  

55,739

  

61,742

 

   
 
 
 
 

Fixed charges

  

$

72,414

  

$

165,815

  

$

280,883

  

$286,770

  

$267,783

 

   
 
 
 
 

Ratio of earnings to fixed charges

  

 

2.1x

  

 

2.5x

  

 

2.1x

  

1.7x

  

0.6x

 

 

 

(1)    The interest portion of rent expense is estimated to be one-third of rent expense.

(2)    The ratio in 2002 was less than 1x. The amount of the deficiency is approximately $101.4 million.