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

Exhibit 12.1

STATEMENT RE COMPUTATION OF RATIOS

 

   

Nine Months
Ended

September 30,
2006

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

Earnings:

            

Pre-tax income (loss)

   $ 43,478   $         27,528   $         (9,406 )   $         17,899   $         18,859   $         21,366

Less: equity in affiliates

     33     82     -           79     126     (616)
                                     
    43,445     27,446     (9,406 )     17,820     18,733     21,982

Fixed charges (1):

            

Interest expense, gross (2)

     12,359     18,944     13,145       2,638     2,061     5,112

Interest portion of rent expense

     1,716     2,512     2,696       2,661     1,902     1,062
                                     

a) Fixed charges

     14,075     21,456     15,841       5,299     3,963     6,174

b) Earnings for ratio (3)

   $ 57,520   $ 48,902   $ 6,435     $ 23,119   $ 22,696   $ 28,156

Ratios:

            

Earnings to fixed charges (b/a)

     4.1     2.3     -    (4)       4.4     5.7     4.6

Deficit of earnings to fixed charges

     -         -       $ (9,406 )     -         -         -    
(1) Fixed charges consist of interest on indebtedness and amortization of prepaid debt fees 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. Additional earnings of $9,406 would have been needed to achieve a coverage of 1:1.