EX-12.1 4 dex121.htm STATEMENT RE COMPUTATION OF RATIOS Statement re Computation of Ratios

Exhibit 12.1

STATEMENT RE: COMPUTATION OF RATIOS

 

     Year Ended December 31,  
     2005    2004     2003    2002    2001  
     (in thousands, except ratios)  

Earnings:

              

Pre-tax income (loss)

    $ 27,528    $ (9,406 )   $ 17,899    $ 18,859    $ 21,366  

Less: equity in affiliates

      82      —         79      126      (616 )
                                     
     27,446      (9,406 )     17,820      18,733      21,982  

Fixed charges (1):

              

Interest expense, gross (2)

      18,944      13,145       2,638      2,061      5,112  

Interest portion of rent expense

      2,512      2,696       2,661      1,902      1,062  
                                     

a) Fixed charges

      21,456      15,841       5,299      3,963      6,174  

b) Earnings for ratio (3)

    $ 48,902    $ 6,435     $ 23,119    $ 22,696    $ 28,156  

Ratios:

              

Earnings to fixed charges (b/a)

      2.3      n/a (4)     4.4      5.7      4.6  

Deficit of earnings to fixed charges

      n/a    $ (9,406 )     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.