EX-12.1 17 dex121.htm STATEMENT REGARDING COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Statement regarding computation of ratio of earnings to fixed charges

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,
 
     2006     2007    2007    2008     2009     2010  
     (Amounts in thousands, except ratios)  

Earnings

              

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

              

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.