EX-12.1 5 ex12-1.htm STATEMENT REGARDING COMPUTATION OF RATIOS ex12-1.htm


EXHIBIT 12.1

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

   
Fiscal Year Ended December 31,
 
   
2014
   
2013
   
2012
   
2011
   
2010
 
Earnings (loss) before income taxes
  $ (5,859,879 )   $ 6,611,432     $ 2,257,626     $ 3,911,702     $ 1,249,223  
                                         
Add:
                                       
Interest expense
  $ 2,971,229     $ 396,440     $ 128,838     $ 62,686     $ 116,747  
Rental expense factor (1)
  $ 1,973,092     $ 781,986     $ 322,343     $ 299,686     $ 272,813  
Earnings available for fixed charges
  $ (915,558 )   $ 7,789,858     $ 2,708,807     $ 4,274,074     $ 1,638,783  
Fixed Charges:
                                       
Interest expense (2)
  $ 2,971,229     $ 396,440     $ 128,838     $ 62,686     $ 116,747  
Rental expense factor (1)
  $ 1,973,092     $ 781,986     $ 322,343     $ 299,686     $ 272,813  
Total fixed charges
  $ 4,944,321     $ 1,178,426     $ 451,181     $ 362,372     $ 389,560  
Ratio of earnings to fixed charges (3)
    (1.19)(4)       5.61       5.00       10.79       3.21  

 
(1)
“Rental Expense Factor” is the portion of rental expense estimated to be representative of the interest expense within rental expenses. The portion of rental expense representative of interest factor is calculated as one third of the total of rent, rental expenses and lease expenses.
 
       
 
(2)
The ratio of earnings to fixed charges is computed by dividing income or loss before taxes by fixed charges.  Fixed charges include interest expense financing fees and an estimate of the interest expense within rent expense under operating leases.
 
       
 
(3)
Interest expense includes amortization expense for capitalized debt costs.
 
       
 
(4)
Earnings for the year ended December 31, 2014 were inadequate to cover fixed charges. The coverage deficiency was $5.8 million.