EX-12.1 4 a08-7690_1ex12d1.htm EX-12.1

Exhibit 12.1

 

 

 

DETERMINATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

 

 

Seven Months

 

Five Months

 

 

 

 

 

 

 

 

 

 

 

Ended

 

Ended

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

May 31,

 

Year Ended December 31,

 

(dollars in thousands)

 

2007

 

2007

 

2006

 

2005

 

2004

 

2003

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

$

(26,284

)

$

(46,982

)

$

664

 

$

(727

)

$

(2,404

)

$

(19,251

)

Fixed charges

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred financing costs

 

 

 

 

 

 

856

 

Interest expense

 

26,322

 

13,829

 

31,599

 

31,127

 

30,508

 

20,244

 

Earnings (loss) before fixed charges

 

$

38

 

$

(33,153

)

$

32,263

 

$

30,400

 

$

28,106

 

$

1,849

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of deferred financing costs

 

$

 

$

 

$

 

$

 

$

 

$

856

 

Interest expense

 

26,322

 

13,829

 

31,599

 

31,127

 

30,508

 

20,244

 

Total fixed charges

 

$

26,322

 

$

13,829

 

$

31,599

 

$

31,127

 

$

30,508

 

$

21,100

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges(1)

 

 

 

1.02

 

 

 

 

 


(1)           If we consistently incur net losses before income tax, we may not be able to maintain a ratio coverage of greater than 1:1.  In 2006 we had income before taxes of $664,000 generating a ratio of 1.02 to 1.00.  Due to our losses for the seven months ended December 31, 2007, five months ended May 31, 2007 and years ended December 31, 2005, 2004 and 2003 the ratio coverage in the respective years was less than 1.00 to 1.00.  We needed to generate additional earnings of $26.3, $47.0, $0.7, $2.4 and $19.3 million for the seven months ended December 31, 2007, five months ended May 31, 2007 and years ended December 31, 2005, 2004 and 2003, respectively, to achieve a coverage ratio of 1.00:1.00.