Exhibit 12.1
US LEC CORP.
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN THOUSANDS)
FISCAL YEAR ENDED DECEMBER 31, |
SIX MONTHS JUNE 30, |
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1999 |
2000 |
2001 |
2002 |
2003 |
2003 |
2004 |
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EARNINGS: |
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Income (loss) before minority interest and income taxes |
$ | 39,426 | $ | (141,119 | ) | $ | (63,354 | ) | $ | (45,892 | ) | $ | (14,540 | ) | $ | (8,940 | ) | $ | (4,475 | ) | ||||||||
Equity method investment earnings (losses) |
— | — | — | — | — | — | — | |||||||||||||||||||||
39,426 | (141,119 | ) | (63,354 | ) | (45,892 | ) | (14,540 | ) | (8,940 | ) | (4,475 | ) | ||||||||||||||||
Add: |
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Fixed charges |
4,739 | 10,421 | 15,310 | 12,093 | 12,408 | 6,041 | 6,578 | |||||||||||||||||||||
Amortization of capitalized interest |
— | — | — | — | — | — | — | |||||||||||||||||||||
Distributed income of equity investees |
— | — | — | — | — | — | — | |||||||||||||||||||||
Less: |
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Capitalized interest |
— | — | — | — | — | — | — | |||||||||||||||||||||
Minority interest in pre-tax income of subsidiaries that have not incurred fixed charges |
— | — | — | — | — | — | — | |||||||||||||||||||||
Earnings as adjusted |
44,165 | (130,698 | ) | (48,044 | ) | (33,799 | ) | (2,132 | ) | (2,899 | ) | 2,103 | ||||||||||||||||
FIXED CHARGES: |
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Third party interest expense |
3,096 | 7,839 | 11,870 | 8,553 | 8,577 | 4,180 | 4,638 | |||||||||||||||||||||
Capitalized interest |
— | — | — | — | — | — | — | |||||||||||||||||||||
Amortization of loan acquisition costs |
259 | 690 | 816 | 854 | 1,062 | 539 | 523 | |||||||||||||||||||||
Estimate of the interest within rental expense |
1,384 | 1,892 | 2,624 | 2,686 | 2,769 | 1,322 | 1,417 | |||||||||||||||||||||
Total fixed charges |
$ | 4,739 | $ | 10,421 | $ | 15,310 | $ | 12,093 | $ | 12,408 | $ | 6,041 | $ | 6,578 | ||||||||||||||
Ratio of earnings to fixed charges/(excess of fixed charges over earnings) |
9.3 | x | $ | (141,119 | ) | $ | (63,354 | ) | $ | (45,892 | ) | $ | (14,540 | ) | $ | (8,940 | ) | $ | (4,475 | ) | ||||||||