EX-12 2 ex-12x12312014.htm EXHIBIT 12 EX - 12 - 12.31.2014


Exhibit 12

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND TO FIXED CHARGES AND PREFERENCE DIVIDENDS
The following table shows our unaudited ratios of earnings to (a) fixed charges and (b) fixed charges and preference dividends for the periods presented:
 
(Unaudited)
 
Successor
 
 
Predecessor
 
 
Pre-Predecessor
 
June 30, 2014
Through
December 31, 2014
 
 
January 1, 2014 Through June 29, 2014
 
Year Ended December 31,
 
September 22, 2010 Through December 31, 2010
 
 
December 26, 2009 Through September 21, 2010
 
 
 
 
2013
 
2012
 
2011
 
 
 
Earnings (loss):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Loss) income before income taxes
$
(21,869
)
 
 
$
(5,528
)
 
$
42,335

 
$
19,493

 
$
13,425

 
$
(1,693
)
 
 
$
64,647

Adjustments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Less: Equity income from equity investees
(381
)
 
 
(831
)
 
(2,345
)
 
(1,510
)
 
(865
)
 
(410
)
 
 
(773
)
(Loss) income before income taxes and equity income from equity investees
(22,250
)
 
 
(6,359
)
 
39,990

 
17,983

 
12,560

 
(2,103
)
 
 
63,874

Add:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges
17,805

 
 
8,889

 
18,416

 
21,645

 
19,878

 
4,864

 
 
25,351

Distributed income of equity investees
—

 
 
—

 
1,000

 
850

 
250

 
—

 
 
704

Total earnings (loss)
$
(4,445
)
 
 
$
2,530

 
$
59,406

 
$
40,478

 
$
32,688

 
$
2,761

 
 
$
89,929

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expensed, including amortization of deferred financing costs and accretion of debt discount, excluding loss on early extinguishment of debt
$
16,172

 
 
$
7,301

 
$
15,316

 
$
18,612

 
$
17,011

 
$
4,228

 
 
$
23,489

Estimated interest component of rent expense
1,633

 
 
1,588

 
3,100

 
3,033

 
2,867

 
636

 
 
1,862

Total fixed charges
$
17,805

 
 
$
8,889

 
$
18,416

 
$
21,645

 
$
19,878

 
$
4,864

 
 
$
25,351

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pre-tax preferred dividend requirements
$
2,831

 
 
$
—

 
$
4,227

 
$
8,390

 
$
5,384

 
$
9,597

 
 
$
—

Total fixed charges plus preference dividends
$
20,636

 
 
$
8,889

 
$
22,643

 
$
30,035

 
$
25,262

 
$
14,461

 
 
$
25,351

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges (1)
— (2)

 
 
— (2)

 
3.2

 
1.9

 
1.6

 
— (2)

 
 
3.5

Ratio of earnings to fixed charges and preference dividends (1)
— (2)

 
 
— (2)

 
2.6

 
1.3

 
1.3

 
— (2)

 
 
3.5

Amount of deficiency in earnings to fixed charges
$
(22,250
)
 
 
$
(6,359
)
 
—

 
—

 
—

 
$
(2,103
)
 
 
—

Amount of deficiency in earnings to fixed charges and preference dividends
$
(25,081
)
 
 
$
(6,359
)
 
—

 
—

 
—

 
$
(11,700
)
 
 
—

1.
For purposes of calculating the ratios of consolidated earnings to fixed charges and to fixed charges and preference dividends:
•
“earnings” consist of income (loss) before income taxes and equity income (loss) of investees, plus fixed charges and distributed income of equity investees;
•
“fixed charges” represent interest expensed and capitalized, and amortization of deferred financing costs and accretion of debt discount; and




•
“preference dividends” refers to the amount of pre-tax earnings that is required to pay the cash dividends on outstanding preference securities and is computed as the amount of (a) the dividend divided by (b) the result of 1 minus the effective income tax rate applicable to continuing operations.
The ratios of earnings to fixed charges and to fixed charges and preference dividends are ratios that have been calculated in accordance with Commission rules and regulations. These ratios have no application to our credit and lease facilities and preferred shares and we believe they are not ratios typically used by investors to evaluate our overall operating performance.

2.
The ratio of earnings to fixed charges and to fixed charges and preference dividends for this period was less than 1.0x.