EX-12.1 8 a07-2853_1ex12d1.htm EX-12.1

Exhibit 12.1

Computation of Ratio of EBITDA to interest expense

 

 

For the Years Ended December 31,

 

 

 

2006

 

2005

 

2004

 

2003

 

2002

 

EBITDA(1):

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$374,827

 

$

287,913

 

$

260,447

 

$

292,157

 

$

215,270

 

Add: Interest expense(2)

 

429,807

 

313,053

 

232,918

 

194,999

 

185,362

 

Add: Depreciation, depletion and amortization(3)

 

83,058

 

75,574

 

67,853

 

55,905

 

48,041

 

Add: Joint venture depreciation, depletion and amortization

 

14,941

 

8,284

 

3,544

 

7,417

 

4,433

 

Total EBITDA

 

$902,633

 

$684,824

 

$564,762

 

$550,478

 

$453,106

 

Interest expense

 

$429,807

 

$

313,053

 

$

232,918

 

$

194,999

 

$

185,362

 

EBITDA/Interest expense(4)

 

2.1x

 

2.2x

 

2.4x

 

2.8x

 

2.4x

 

 

Explanatory Notes:

(1)             EBITDA should be examined in conjunction with net income as shown in the Company’s Consolidated Statements of Operations. EBITDA should not be considered as an alternative to net income (determined in accordance with GAAP) as an indicator of the Company’s performance, or to cash flows from operating activities (determined in accordance with GAAP) as a measure of the Company’s liquidity, nor is EBITDA a measure indicative of funds available to fund the Company’s cash needs or available for distribution to shareholders. Rather, it is an additional measure for the Company to use to analyze how its business is performing.

(2)             For the years ended December 31, 2006, 2005, 2004, 2003 and 2002, interest expense includes $0, $0, $190, $337 and $348, respectively, of interest expense reclassified to discontinued operations.

(3)             For the years ended December 31, 2006, 2005, 2004, 2003 and 2002, depreciation, depletion and amortization includes $1,858, $2,628, $6,658, $8,002 and $7,927, respectively, of depreciation and amortization reclassified to discontinued operations.

(4)             The ratio for 2004 gives effect to the CEO, CFO and ACRE Partners compensation charges of $106.9 million, the 8.75% Senior Notes due 2008 redemption charges of $11.5 million and the preferred stock redemption charge of $9.0 million. Excluding these charges, the ratio of EBITDA/Interest expense would have been 2.9x.