Exhibit 12.1
CALCULATION OF RATIOS OF EARNINGS TO FIXED CHARGES
PAETEC Holding’s ratios of earnings to fixed charges were as follows:
Year Ended December 31, | |||||||||||||||||
2005 | 2006 | 2007 | 2008 | 2009 | |||||||||||||
(in thousands) | |||||||||||||||||
Earnings: |
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Income (loss) before income taxes |
$ | 28,598 | $ | 16,233 | $ | 18,565 | $ | (398,098 | ) | $ | (30,043 | ) | |||||
Plus: Fixed Charges (see below) |
11,374 | 28,206 | 69,932 | 76,673 | 77,465 | ||||||||||||
Total Earnings |
$ | 39,972 | $ | 44,439 | $ | 88,497 | $ | (321,425 | ) | $ | 47,422 | ||||||
Fixed Charges: |
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Interest expense, including amortization of debt issuance costs |
$ | 10,472 | $ | 27,319 | $ | 68,373 | $ | 73,663 | $ | 74,149 | |||||||
Portion of rental expense deemed to represent interest |
902 | 887 | 1,559 | 3,010 | 3,316 | ||||||||||||
Total Fixed Charges |
$ | 11,374 | $ | 28,206 | $ | 69,932 | $ | 76,673 | $ | 77,465 | |||||||
Ratio of earnings to fixed charges |
3.51 | 1.58 | 1.27 | * | * | ||||||||||||
Coverage deficiency |
$ | — | $ | — | $ | — | $ | (398,098 | ) | $ | (30,043 | ) | |||||
* | There were insufficient earnings available to cover fixed charges for the years ended December 31, 2008 and 2009. As a result, the ratio of earnings to fixed charges was less than 1.0 for each of such periods. |