EX-12.1 2 w08205exv12w1.htm STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES exv12w1
 

Exhibit 12.1

Statement of Computation re: Ratio of Earnings to Fixed Charges (1)

                                                 
                                            Three Months
                            For the Years Ended December 31,   Ended
    2004   2003   2002   2001   2000   March 31, 2005
Adjusted Earnings (2):
                                               
Earnings (losses) before minority interest and equity income (loss)
  $ (57,190 )   $ (68,998 )   $ (67,876 )   $ (60,362 )   $ (82,189 )   $ (13,287 )
Fixed Charges
    10,833       13,394       22,706       27,988       27,055       1,827  
 
   
 
     
 
     
 
     
 
     
 
     
 
Adjusted earnings (losses)
  $ (46,357 )   $ (55,604 )   $ (45,170 )   $ (32,374 )   $ (55,134 )   $ (11,460 )
Fixed Charges:
                                               
Interest expense
  $ 9,761     $ 12,173     $ 21,661     $ 26,826     $ 26,619     $ 1,536  
Assumed interest element included in rent expense (3)
    1,072       1,221       1,045       1,162       436       291  
 
   
 
     
 
     
 
     
 
     
 
     
 
Total Fixed Charges
  $ 10,833     $ 13,394     $ 22,706     $ 27,988     $ 27,055     $ 1,827  
Earnings available to cover fixed charges
  $ (46,357 )   $ (55,604 )   $ (45,170 )   $ (32,374 )   $ (55,134 )   $ (11,460 )
Fixed Charges
    10,833       13,394       22,706       27,988       27,055       1,827  
Ratio (if greater than 1 to 1)
                 
Deficit in dollars (if ratio less than 1 to 1)
  $ (57,190 )   $ (68,998 )   $ (67,876 )   $ (60,362 )   $ (82,189 )   $ (13,287 )


(1)   CompuCom was sold on October 1, 2004 and treated as discontinued operations as of September 30, 2004. The fixed charge coverage ratio assumes Compucom is excluded for all periods presented.
 
(2)   Adjusted Earnings includes earnings (losses) before other income (loss), impairment-related party, interest income, interest expense, income taxes, minority interest and equity (income) loss plus fixed charges. Fixed charges consist of interest expense, including amortization of debt issuance costs, and that portion of rent expense that we believe to be representative of interest.
 
(3)   Total rent expense for the year multiplied by twenty percent. This is the portion of rental expense we believe to be representative of interest.

Pro Forma Ratio of Earnings to Fixed Charges

         
    Year Ended
    December 31,
    2004
Adjusted Earnings (2):
       
Earnings (losses) before minority interest and equity income (loss)
  $ (57,190 )
Fixed Charges
    6,462  
 
   
 
 
Adjusted earnings (losses)
  $ (50,728 )
Fixed Charges:
       
Interest expense
  $ 5,390  
Assumed interest element included in rent expense (3)
    1,072  
 
   
 
 
Total Fixed Charges
  $ 6,462  
Earnings available to cover fixed charges
  $ (50,728 )
Fixed Charges
    6,462  
Ratio (if greater than 1 to 1)
 
Deficit in dollars (if ratio less than 1 to 1)
  $ (57,190 )