EX-12.1 19 y77430exv12w1.htm EX-12.1: COMPUTATION OF EARNINGS TO FIXED CHARGES EX-12.1
Exhibit 12.1
Computation of Ratio of Earnings to Fixed Charges
                                                                   
    Predecessor     Successor
                            Ended     Ended   Ended   Three Months Ended
    Year Ended December 31,   October 30     December 31   December 31   March 31   March 31
    2004   2005   2006   2007     2007   2008   2008   2009
                                      (CAD in millions)                        
 
                                                                  
Earnings:
                                                                  
Income (loss) from continuing operations before income taxes, equity in net losses of affiliates and minority interests
     133.1       141.4       125.7       138.8         (66.2 )     (987.3 )     (117.8 )     (34.8 )
 
                                                                  
Pre-tax dividends requirements
     (2.8 )     (2.8 )     (2.3 )     —         (2.6 )     (14.8 )     (3.6 )     (5.5 )
Fixed charges
     30.6       36.9       31.4       21.7         51.8       311.8       78.0       84.9  
Amortization of capitalized interest
     18.4       15.0       11.9       8.9         2.4       13.8       3.4       3.7  
Capitalized interest
     (17.6 )     (15.0 )     (12.2 )     (9.5 )       (5.4 )     (39.0 )     (9.2 )     (9.3 )
 
                                                                  
Earnings adjusted for fixed charges
     161.7       175.5       154.5       159.9         (20.0 )     (715.5 )     (49.2 )     39.0  
 
                                                                  
 
                                                                  
Fixed charges:
                                                                  
Pre-tax preferred dividends
     2.8       2.8       2.3       —         2.6       14.8       3.6       5.5  
Interest expensed and capitalized, including amortization of capitalized expenses related to indebtedness
     26.5       29.5       24.6       18.1         47.5       286.8       72.1       76.7  
Portion of rent expense representative of interest (1)
     1.3       4.6       4.5       3.6         1.7       10.2       2.3       2.7  
 
                                                                  
Total fixed charges
     30.6       36.9       31.4       21.7         51.8       311.8       78.0       84.9  
 
                                                                  
 
                                                                  
Ratio of earnings to fixed charges (2)
     5.3       4.8       4.9       7.4         —       —       —       —  
 
(1)   One quarter of rent expense is deemed to be representative of interest.
 
(2)   For purposes of calculating the ratio of earnings to fixed charges, earnings represent income from continuing operations before income taxes, less capitalized interest and pre-tax preferred dividends, plus amortization of capitalized interest and fixed charges.  Fixed charges include interest expense (including amortization of debt issuance costs), pre-tax preferred dividends, capitalized interest and the portion of operating rental expense that our management believes is representative of the interest component of rent expense.  The ratio of earnings to fixed charges is not presented for the two months ended December 31, 2007, the twelve months ended December 31, 2008, the three months ended March 31, 2008 and the three months ended March 31, 2009 as the earnings were inadequate to cover fixed charges during those periods by $71.8, $1,027.3, $127.2 and $45.9 respectively.