EX-12 4 c02984s4exv12.htm STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES exv12
 

Exhibit 12
Rural Cellular Corporation, Inc.
Computation of Ratio of Earnings to Fixed Charges
                                           
    Years ended December 31,
     
    2005   2004   2003   2002   2001
                     
    (Dollars in thousands)
Earnings (loss)
                                       
 
Pretax income (loss)
  $ (64,540 )   $ (60,613 )   $ (11,205 )   $ 21,162     $ (49,212 )
 
Add back: fixed charges as disclosed below
    176,600       168,089       138,600       113,502       132,027  
 
Less: capitalized interest
    (1,849 )     (1,900 )     (204 )            
                               
 
Earnings (loss) as adjusted
    110,211       105,576       127,191       134,664       82,815  
Computation of fixed charges
                                       
 
Interest expense
    169,610       162,250       135,346       110,597       129,260  
 
Capitalized interest
    1,849       1,900       204              
 
Portion of rent expense representative of interest factor
    5,141       3,939       3,050       2,905       2,767  
                               
 
Total fixed charges
    176,600       168,089       138,600       113,502       132,027  
Earnings (deficiency) to fixed charges
    (66,389 )     (62,513 )     (11,409 )     21,162       (49,212 )
Ratio of earnings to fixed charges
                      1.19 X      
  •  Fixed charges consist of all interest, whether expensed or capitalized, amortization of debt costs, and the portion of rent expense representing interest.
 
  •  Earnings consist of income before income tax, extraordinary item, cumulative effect adjustment, and preferred stock dividends plus fixed charges reduced by capitalized interest
 
  •  The ratio of earnings to fixed charges is computed by dividing fixed charges into earnings.