EX-12.1 3 a09-36116_1ex12d1.htm EX-12.1

Exhibit 12.1

 

 

 

DETERMINATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

 

 

Year

 

Year

 

Seven Months

 

 

Five Months

 

 

 

 

 

 

 

Ended

 

Ended

 

Ended

 

 

Ended

 

 

 

 

 

 

 

December 31,

 

December 31,

 

December 31,

 

 

May 31,

 

Year Ended December 31,

 

 

 

2009

 

2008

 

2007

 

 

2007

 

2006

 

2005

 

(dollars in thousancds)

 

(Successor)

 

(Successor)

 

(Successor)

 

 

(Predecessor)

 

(Predecessor)

 

(Predecessor)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

$

(30,062

)

$

(38,855

)

$

(26,284

)

 

$

(46,982

)

$

664

 

$

(727

)

Total Fixed charges

 

46,505

 

46,878

 

26,322

 

 

13,829

 

31,599

 

31,127

 

Earnings (loss) before fixed charges

 

$

16,443

 

$

8,023

 

$

38

 

 

$

(33,153

)

$

32,263

 

$

30,400

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total fixed charges

 

$

46,505

 

$

46,878

 

$

26,322

 

 

$

13,829

 

$

31,599

 

$

31,127

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 years ended December 31, 2009 and 2008, seven months ended December 31, 2007, five months ended May 31, 2007 and year ended December 31, 2005 the ratio coverage in the respective years was less than 1.00 to 1.00.  We needed to generate additional earnings of $30.1, $38.9, $26.3, $47.0, and $0.7 million for the years ended December 31, 2009 and 2008, seven months ended December 31, 2007, five months ended May 31, 2007 and year ended December 31, 2005, respectively, to achieve a coverage ratio of 1.00:1.00.