EX-12.1 4 dex121.htm STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Statement of Computation of Ratio of Earnings to Fixed Charges

Exhibit 12.1

ASBURY AUTOMOTIVE GROUP, INC.

STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(in thousands, except ratios)

 

Ratio of earnings to fixed charges

   For the Years Ended December 31,     For the Three
Months Ended
March 31,
 
     2006     2005     2004     2003     2002     2007     2006  

EARNINGS COMPUTATION:

              

Income from continuing operations

   $ 67,154     $ 58,233     $ 49,136     $ 44,431     $ 32,767     $ 2,409     $ 13,690  

Income tax expense

     40,546       34,852       29,199       27,232       32,786       1,458       8,214  

Fixed charges

     103,663       85,322       71,478       63,398       58,988       27,679       24,195  

Amortization of capitalized interest

     293       253       199       110       58       74       73  

Capitalized interest

     (593 )     (810 )     (1,334 )     (785 )     (866 )     (27 )     (24 )
                                                        

Earnings for purposes of computation

   $ 211,063     $ 177,850     $ 148,678     $ 134,386     $ 123,733     $ 31,593     $ 46,148  
                                                        

FIXED CHARGES COMPUTATION:

              

Other interest expense

   $ 42,714     $ 39,279     $ 37,473     $ 34,599     $ 33,455     $ 11,397     $ 10,540  

Floor plan interest expense

     40,166       27,336       18,600       14,336       13,355       10,981       8,727  

Amortization deferred financing fees

     2,359       2,192       1,579       5,333       4,548       627       573  

Interest component of rent expense

     17,831       15,705       12,492       8,345       6,764       4,647       4,331  

Capitalized interest

     593       810       1,334       785       866       27       24  
                                                        

Fixed charges for purposes of computation

   $ 103,663     $ 85,322     $ 71,478     $ 63,398     $ 58,988     $ 27,679     $ 24,195  
                                                        

RATIO OF EARNINGS TO FIXED CHARGES

     2.04 x     2.08 x     2.08 x     2.12 x     2.10 x     1.14 x     1.91 x