EX-12 16 dex12.htm RATIO OF EARNINGS TO FIXED CHARGES Ratio of Earnings to Fixed Charges

Exhibit 12

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,  
     2007     2006     2005     2004     2003  

EARNINGS COMPUTATION:

          

Income from continuing operations

   $ 54,286     $ 67,089     $ 57,768     $ 48,340     $ 43,875  

Income tax expense

     30,537       40,506       34,573       28,721       26,891  

Fixed charges

     101,627       102,872       84,684       71,027       63,103  

Amortization of capitalized interest

     252       235       195       141       52  

Capitalized interest

     (250 )     (593 )     (810 )     (1,334 )     (785 )
                                        

Earnings for purposes of computation

   $ 186,452     $ 210,109     $ 176,410     $ 146,895     $ 133,136  
                                        

FIXED CHARGES COMPUTATION:

          

Other interest expense

   $ 37,608     $ 42,714     $ 39,279     $ 37,473     $ 34,599  

Floor plan interest expense

     42,161       39,645       26,967       18,372       14,253  

Amortization deferred financing fees

     2,582       2,359       2,192       1,579       5,333  

Interest component of rent expense

     19,026       17,561       15,436       12,269       8,133  

Capitalized interest

     250       593       810       1,334       785  
                                        

Fixed charges for purposes of computation

   $ 101,627     $ 102,872     $ 84,684     $ 71,027     $ 63,103  
                                        

RATIO OF EARNINGS TO FIXED CHARGES

     1.83 x     2.04 x     2.08 x     2.07 x     2.11 x