EXHIBIT 12.1
RATIO OF EARNINGS TO FIXED CHARGES
We have computed the ratio of earnings to fixed charges for each of the following periods on a consolidated basis. The ratio of earnings to fixed charges has been computed by dividing earnings by fixed charges. For this purpose, earnings consist of income (loss) before income taxes plus fixed charges less capitalized interest. Fixed charges consist of interest expense, capitalized interest, amortization of debt financing costs and an estimate of the interest component of rental expense. We have determined that 30% of our rental expense represents a reasonable approximation of the interest portion of rental expense. For the periods indicated below, we did not have any outstanding shares of preferred stock. Therefore, the ratio of combined fixed charges and preferred stock dividends to earnings are identical to the ratios presented in the table below.
You should read the ratio of earnings to fixed charges in conjunction with our consolidated and condensed consolidated financial statements, including the notes to those statements, incorporated by reference in this prospectus.
Years Ended March 31, |
Nine Months Ended December 31, |
Years Ended December 31, |
Six Months Ended June 30, |
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2006 | 2007 | 2007 | 2008 | 2009 | 2010 | |||||||||||||||||
(Amounts in thousands, except ratios) | ||||||||||||||||||||||
Earnings |
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Income (loss) before income taxes |
$ | 79,813 | $ | 130,789 | $ | 57,774 | $ | (56,688 | ) | $ | (40,172 | ) | $ | (38,346 | ) | |||||||
Plus: Fixed charges |
734 | 182 | 104 | 13,784 | 10,024 | 12,064 | ||||||||||||||||
Less: Capitalized interest |
(195 | ) | — | — | (288 | ) | (256 | ) | (464 | ) | ||||||||||||
Total |
$ | 80,352 | $ | 130,971 | $ | 57,878 | $ | (43,192 | ) | $ | (30,404 | ) | $ | (26,746 | ) | |||||||
Fixed Charges |
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Interest Expense |
$ | 236 | $ | 73 | $ | 16 | $ | 12,519 | $ | 7,598 | $ | 10,073 | ||||||||||
Capitalized interest |
195 | — | — | 288 | 256 | 464 | ||||||||||||||||
Amortization of debt financing costs |
218 | 5 | 9 | 553 | 1,547 | 1,142 | ||||||||||||||||
Estimate of interest component of rental expense |
85 | 104 | 79 | 424 | 623 | 385 | ||||||||||||||||
Total |
$ | 734 | $ | 182 | $ | 104 | $ | 13,784 | $ | 10,024 | $ | 12,064 | ||||||||||
Ratio of earnings to fixed charges |
109.47x | 719.62x | 556.52x | — | (1) | — | (2) | — | (3) |
(1) | For the year ended December 31, 2008, income was insufficient to cover fixed charges by $56,976,000, primarily due to goodwill and intangible asset impairment charges. |
(2) | For the year ended December 31, 2009, income was insufficient to cover fixed charges by $40,428,000. |
(3) | For the six months ended June 30, 2010, income was insufficient to cover fixed charges by $38,810,000. |