EX-12.1 4 dex121.htm COMPUTATION OF RATIO OF EARNING TO FIXED CHARGES Computation of Ratio of Earning to Fixed Charges

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
ENDED

JUNE 30,


 
    1999

    2000

    2001

    2002

    2003

    2003

    2004

 

EARNINGS:

                                                       

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:

                                                       

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:

                                                       

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:

                                                       

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 )