EX-12.1 2 dex121.htm STATEMENT RE COMPUTATION OF RATIOS Statement RE Computation of Ratios

Exhibit 12.1

STATEMENT RE COMPUTATION OF RATIOS

 

     Six Months Ended    Year Ended December 31,
     June 30, 2010    2009    2008    2007    2006    2005
     (in thousands, except ratios)

Earnings:

                  

Pre-tax income (loss)

      $ 56,100        $ (46,074)        $ 18,582        $ (43,550)        $ 52,235        $ 27,528  

Less: income from equity investees

      –          277         93        358         33        82  
                                         
     56,100        (46,351)        18,489        (43,908)        52,202        27,446  

Fixed charges (1) :

                  

Interest expense, gross (2)

      28,888        70,311         94,177        100,935         17,785        18,944  

Interest portion of rent expense

      2,457        5,241         5,163        4,098         2,241        2,512  
                                         

a) Fixed charges

      31,345        75,552         99,340        105,033         20,026        21,456  
                                         

b) Earnings for ratio (3)

      $ 87,445        $ 29,201         $ 117,829        $ 61,125         $ 72,228        $ 48,902  
                                         

Ratios:

                  

Earnings to fixed charges (b/a)

      2.8        –     (4)        1.2        –       (4)        3.6        2.3  

Deficit of earnings to fixed charges

      $ –            $ (46,351)        $ –            $ (43,908)        $ –            $ –      

 

  (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 for ratio consist of income (loss) from continuing operations before income taxes, less income (loss) from equity investees, plus fixed charges.

  (4)

Due to Itron’s losses for the years ended December 31, 2009 and 2007, the coverage ratio was less than 1:1. Additional earnings of $46,351 and $43,908 would have been needed to achieve a coverage ratio of 1:1 in each of those respective periods.