EX-12.1 159 dex121.htm STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Statement of Computation of Ratio of Earnings to Fixed Charges

Exhibit 12.1

Statement of Computation of Ratio of Earnings to Fixed Charges

KAR Holdings

(in millions, except ratios)

 

     Pro forma year ended
December 31, 2006		     Nine months ended
September 30, 2007		   

Pro forma
January 1, 2007

to
September 30, 2007

Income from continuing operations before income taxes

    $ (60.4 )   $ 2.5    $ 2.6
                     

Fixed charges:

        

Interest expense

      229.8       104.4      167.0

Interest component of rentals:

        

Buildings - 1/3

      13.1       7.1      11.5

Autos and trucks - 1/3

      0.9       0.4      0.7

Office and other equipment - 1/3

      3.2       1.2      2.1
                     

Total interest component of rentals:

      17.2       8.7      14.3

Total fixed charges

    $ 247.0     $ 113.1    $ 181.3

Earnings before income taxes and fixed charges

    $ 186.6     $ 115.6    $ 183.9

Ratio of earnings to fixed charges

      0.8       1.0      1.0
                     

ADESA, Inc.

(in millions, except ratios)

 

     For years ended December 31,   

From
January 1, 2007
to

April 19, 2007

     2002    2003    2004    2005    2006   

Income from continuing operations before Income taxes

    $ 152.0    $ 188.1    $ 178.1    $ 201.9    $ 204.4    $ 51.9
                                         

Fixed charges(1)

                  

Interest expense

      22.5      16.0      25.4      31.2      27.4      7.8

Interest component of all rentals

      8.0      7.8      7.2      7.3      7.9      2.4
                                         

Total fixed charges

      30.5      23.8      32.6      38.5      35.3      10.2

Earnings before income taxes and fixed charges

    $ 182.5    $ 211.9    $ 210.7    $ 240.4    $ 239.7    $ 62.1
                                         

Ratio of earnings to fixed charges

      6.0      8.9      6.5      6.2      6.8      6.1
                                         

 

(1) Fixed charges represent interest and the interest component of all rentals. ADESA uses a reasonable approximation of the interest factor related to operating leases in calculating the interest component of all rentals.

Insurance Auto Auctions, Inc.

(in thousands, except ratios)

 

     For years ended December 31,   

From
December 27, 2004
to

May 25, 2005

   

From
May 26, 2005

to

December 25, 2005

     For year ended
December 31, 2006		     From
January 1, 2007
to
April 19, 2007
     2002    2003    2004          

Fixed charges

                   

Interest expense, net (1)

      507      1,375      1,505      567      15,021       30,596       10,023

Interest factor attributable to rentals

      7,359      7,493      8,025      3,583      5,308       10,029       3,394
                                                  

Fixed Charges

    $ 7,866    $ 8,868    $ 9,530    $ 4,150    $ 20,329     $ 40,625     $ 13,417
                                                  

Earnings

                   

Pre-tax (loss) income from continuing operations

      7,023      3,636      19,404      4,459      (6,766 )     (8,855 )     1,084

Plus fixed charges

      7,866      8,868      9.530      4,150      20,329       40,625       13,417
                                                  

Earnings

    $ 14,889    $ 12,504    $ 28,934    $ 8,609    $ 13,563     $ 31,770     $ 14,501
                                                  

Ratio of earnings to fixed charges

      1.9      1.4      3.0      2.1      —         —         1.1

Deficiency

      —        —        —        —        (6,766 )     (8,855 )     —  
(1) Includes amortization on debt issuance cost.