EX-12.1 2 h84127a1exv12w1.htm EX-12.1 exv12w1
Exhibit 12.1
EXTERRAN HOLDINGS, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In thousands, except ratio amounts)
(unaudited)
                                                 
    Nine Months Ended     Years Ended December 31,  
    September 30,                                
    2011 (1)     2010 (2)     2009 (3)     2008 (4)     2007 (5)     2006  
Income (loss) from continuing operations before income taxes
  $ (322,030 )   $ (225,170 )   $ (197,557 )   $ (944,609 )   $ (2,339 )   $ 73,908  
Equity (income) loss adjustment
    262       609       91,154       (23,974 )     (12,498 )     (19,430 )
Fixed charges
    134,456       167,218       147,570       141,750       138,805       129,477  
Distributed income of equity interests
                      3,305       8,516       17,599  
Amortization of capitalized interest
    1,365       1,548       783       1,926       1,406       778  
Capitalized interest
    (1,151 )     (1,666 )     (4,529 )     (306 )     (1,346 )     (1,843 )
 
                                   
Total Earnings
  $ (187,098 )   $ (57,461 )   $ 37,421     $ (821,908 )   $ 132,543     $ 200,489  
 
                                   
 
                                               
Interest expense including capitalized interest and amortization of capitalized debt expense
  $ 108,533   $ 137,815     $ 127,374     $ 130,090     $ 131,649     $ 125,384  
Amortized debt discount
    13,588       16,364       8,329                    
Estimated interest portion of rental expenditures
  $ 12,335     $ 13,039     $ 11,867     $ 11,660     $ 7,156     $ 4,093  
 
                                   
Total Fixed Charges
  $ 134,456     $ 167,218     $ 147,570     $ 141,750     $ 138,805     $ 129,477  
 
                                   
 
                                               
Ratio of Earnings to Fixed Charges
                                  1.55  
 
                                   
 
(1)   Due to a loss for the nine months ended September 30, 2011, the ratio was less than 1:1. We would have had to generate additional pre-tax earnings of $321.6 million to achieve coverage of 1:1. During the nine months ended September 30, 2011, we recorded goodwill impairment charges of $196.1 million and long-lived asset impairment charges of $4.4 million. For more information regarding these pre-tax charges, see Notes 9 and 10 to the consolidated financial statements included in our quarterly report on Form 10-Q for the period ended September 30, 2011.
 
(2)   Due to a loss for the year ended December 31, 2010, the ratio was less than 1:1. We would have had to generate additional pre-tax earnings of $224.7 million to achieve coverage of 1:1. During the year, we recorded long-lived asset impairment charges of $146.9 million. For more information regarding these pre-tax charges, see Note 14 to the consolidated financial statements included in our annual report on Form 10-K for the year ended December 31, 2010.
 
(3)   Due to a loss for the year ended December 31, 2009, the ratio was less than 1:1. We would have had to generate additional pre-tax earnings of $110.1 million to achieve coverage of 1:1. During the year, we recorded a goodwill impairment charge of $150.8 million, long-lived asset impairment charges of $97.0 million and restructuring charges of $14.3 million. For more information regarding these pre-tax charges, see Notes 9, 14 and 15, respectively, to the consolidated financial statements included in our annual report on Form 10-K for the year ended December 31, 2010.
 
(4)   Due to a loss for the year ended December 31, 2008, the ratio was less than 1:1. We would have had to generate additional pre-tax earnings of $963.7 million to achieve coverage of 1:1. In the fourth quarter of 2008, we recorded a goodwill impairment charge of $1,148.4 million and a long-lived asset impairment charge of $24.1 million. For more information regarding these pre-tax charges, see Notes 9 and 20, respectively, to the consolidated financial statements included in our annual report on Form 10-K for the year ended December 31, 2008.
 
(5)   Due to a loss for the year ended December 31, 2007, the ratio was less than 1:1. We would have had to generate additional pre-tax earnings of $6.3 million to achieve coverage of 1:1. During the year, we recorded debt extinguishment charges of $70.2 million and an impairment to our fleet assets of $61.9 million. For more information regarding these pre-tax charges, see Notes 11 and 19, respectively, to the consolidated financial statements included in our annual report on Form 10-K for the year ended December 31, 2007.