EX-12.1 5 dex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

 

Exhibit 12.1

 

COMPUTATION OF EARNINGS TO FIXED CHARGES

 

    

Year Ended December 31,

     2004
     2003
    2002
    2001
     2000

Earnings:

                                     

Pre-tax income (loss)

    $ (9,406 )   $ 17,899    $ 18,859    $ 21,366     $ 8,538

Less: equity in affiliates

      —         79      126      (616 )     1,069
    
 
  
  
 

Net pre-tax income (loss)

      (9,406 )     17,820      18,733      21,982       7,469

Fixed charges (1):

                                     

Interest expense, gross (2)

      13,145       2,638      2,061      5,112       5,313

Interest included in rental expense

      2,696       2,661      1,902      1,062       920
    
 
  
  
 

(a) Total fixed charges

      15,841       5,299      3,963      6,174       6,233

(b) Earnings for ratio (3)

      6,435       23,119      22,696      28,156       13,702

Ratio of earnings to fixed charges (b/a)

      n/a   (4)     4.4      5.7      4.6       2.2

Deficit of earnings to fixed charges

      (9,406 )     n/a      n/a      n/a       n/a

 

(1) Fixed charges consist of interest on indebtedness and amortization of debt issuance costs plus that portion of lease rental expense representative of the interest factor.

 

(2) Interest expense, gross includes amortization of prepaid debt fees and discount.

 

(3) Earnings consist of income from continuing operations before income taxes plus fixed charges.

 

(4) Due to Itron’s loss in 2004, the ratio coverage was less than 1:1. Itron must generate additional earnings of $9,406 to achieve a coverage of 1:1.