EX-12.1 3 dex121.htm STATEMENT REGARDING COMPUTATION OF RATIOS Statement Regarding Computation of Ratios

Exhibit 12.1

RATIO OF EARNINGS TO FIXED CHARGES

Our historical consolidated ratio of earnings to fixed charges is presented below for the periods shown.

 

     Calendar Year Ended December 31,    Three Months Ended
     2002    2003    2004    2005    2006    March 31,
2007		    June 30,
2007

Earnings(1):

                     

The sum of:

                     

Pre-tax income from continuing operations

    $ 2,883    $ 3,686    $ 77    $ 5,007    $ 15,848    $ 10,977    $ 13,192

Fixed charges

      13,476      10,882      11,955      15,593      15,858      3,484      2,947

Amortization of capitalized interest

      —        —        —        —        —        —        —  

Share of distributed income of 50% owned affiliate

      115      60      250      488      875      180      200
                                                

Adjusted Earnings

    $ 16,474    $ 14,628    $ 12,282    $ 21,088    $ 32,581    $ 14,641    $ 16,339
                                                

Fixed Charges(2):

                     

The sum of

                     

(i) Interest expensed

    $ 8,218    $ 6,097    $ 7,393    $ 11,407    $ 11,915    $ 2,588    $ 1,992

(ii) Amortized premiums, discounts and capitalized expenses related to indebtedness (included in interest)

      —        —        —        —        —        —        —  

(iii) Estimate of Interest included in rental expense

      5,258      4,785      4,562      4,186      3,943      896      955
                                                

Fixed Charges

    $ 13,476    $ 10,882    $ 11,955    $ 15,593    $ 15,858    $ 3,484    $ 2,947
                                                

Ratio of earnings to fixed charges

      1.2:1      1.3:1      1.0:1      1.4:1      2.0:1      4.2:1      5.5:1
                                                
(1) During September 2006, the Financial Accounting Standards Board (“FASB”) issued FASB Staff Position No. AUG AIR-1 (“FSB”) adopting a new accounting principle as to the methods of accounting for planned maintenance activities (“Turnarounds”), effective for the periods beginning on and after January 1, 2007. We adopted the direct expensing method of accounting for Turnarounds pursuant to the new FSP. We have adjusted the Earnings, above, for periods prior to 2007 to reflect this change.

 

(2) To estimate the amount of interest expense included in rental expense, we used various approaches, primarily the NPV approach for approximately 65% of the actual annual rent expense.