EX-12.1 19 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, Inc.

(in millions, except ratios)

 

      Year Ended
December 31,

2007(1)
    Pro Forma
Year Ended
December 31,

2007
    Year Ended
December 31,

2008
    Three Months
Ended March 31,
2009
 
        

Loss before income taxes

   $ (48.3 )     (43.2 )   $ (247.6 )   $ (6.5 )
                                

Fixed charges(2)

        

Interest expense

     162.3       226.3       215.2       46.6  

Interest component of all rentals

     14.2       19.8       24.6       7.0  
                                

Total fixed charges

     176.5       246.1       239.8       53.6  

(Losses) Earnings before income taxes and fixed charges

   $ 128.2     $ 202.9     $ (7.8 )   $ 47.1  
                                

Ratio of earnings to fixed charges

     —         —         —         —    

Deficiency

     (48.3 )     (43.2 )     (247.6 )     (6.5 )

 

(1) KAR Holdings, Inc. was organized in the state of Delaware on November 9, 2006. However, the Company had no operations prior to the merger transactions on April 20, 2007.

 

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

ADESA, Inc.

(in millions, except ratios)

 

     For years ended December 31,    From
January 1, 2007
to

April 19, 2007
       2004        2005        2006     

Income from continuing operations before Income taxes

   $ 178.1    $ 201.9    $ 204.4    $ 51.9
                           

Fixed charges(1)

           

Interest expense

     25.4      31.2      27.4      7.8

Interest component of all rentals

     7.2      7.3      7.9      2.4
                           

Total fixed charges

     32.6      38.5      35.3      10.2

Earnings before income taxes and fixed charges

   $ 210.7    $ 240.4    $ 239.7    $ 62.1
                           

Ratio of earnings to fixed charges

     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 the year ended
December 31, 2004
   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
              

Fixed charges

            

Interest expense, net (1)

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

Interest factor attributable to rentals

     8,025      3,583      5,308       10,029       3,394
                                    

Fixed Charges

   $ 9,530    $ 4,150    $ 20,329     $ 40,625     $ 13,417
                                    

Earnings

            

Pre-tax (loss) income from continuing operations

     19,404      4,459      (6,766 )     (8,855 )     1,084

Plus fixed charges

     9,530      4,150      20,329       40,625       13,417
                                    

Earnings

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

Ratio of earnings to fixed charges

     3.0      2.1      —         —         1.1

Deficiency

     —        —        (6,766 )     (8,855 )     —  

 

(1) Includes amortization on debt issuance cost.