EX-12.1 197 dex121.htm STATEMENT RE COMPUTATION OF RATIO EARNINGS TO FIXED CHARGES Statement re Computation of ratio Earnings to Fixed Charges

Exhibit 12.1

 

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(In Thousands Except Ratio of Earnings to Fixed Charges)

 

    Rural/Metro Corporation

    Rural/Metro Operating
Company, LLC(b)


    Three Months
Ended
September 30,


  Years Ended June 30,

    Three Months
Ended
September 30,


  Year Ended June 30,

    2005

  2005

  2004

  2003

    2002

    2001

    2005

  2005

    (unaudited)                             (unaudited)    

Ratio of Earnings to Fixed Charges:

                                                     

Computation of Earnings:

                                                     

Pretax income (loss) from continuing operations before minority interest and cumulative effect of change in accounting principle

  $ 7,463   $ 3,689   $ 946   $ (8,519 )   $ (7,593 )   $ (115,513 )       $ 9,158   $ 33,536

Add: Fixed charges

    8,492     33,382     32,826     31,534       29,017       34,373       6,806     11,705
   

 

 

 


 


 


 

 

Total earnings

  $ 15,955   $ 37,071   $ 33,772   $ 23,015     $ 21,424     $ (81,140 )   $ 15,964   $ 45,241
   

 

 

 


 


 


 

 

 

Computation of Fixed Charges:

                                                     

Interest expense

  $ 7,513   $ 29,579   $ 29,243   $ 28,012     $ 25,462     $ 30,624     $ 5,827   $ 7,902

Interest portion of rental expense

    979     3,803     3,583     3,522       3,555       3,749       979     3,803
   

 

 

 


 


 


 

 

Total fixed charges

  $ 8,492   $ 33,382   $ 32,826   $ 31,534     $ 29,017     $ 34,373     $ 6,806   $ 11,705
   

 

 

 


 


 


 

 

Ratio of earnings to fixed charges (a)

    1.88x     1.11x     1.03x         *               *               *           2.35x         3.87x
   

 

 

 


 


 


 

 

 

  (a) For purposes of computing the consolidated ratio of earnings to fixed charges, earnings consist of pretax income from continuing operations before minority interests and equity in net earnings (losses) of affiliated companies, extraordinary items and cumulative effect of accounting changes plus fixed charges. Minority interests in majority-owned subsidiaries were not deducted from earnings as all such subsidiaries had fixed charges. Fixed charges consist of interest (including capitalized interest) on all indebtedness, amortization of debt discount and expense, and that portion of rental expense which we believe to be representative of interest.

 

  (b) For the purpose of this calculation, Rural/Metro (Delaware) Inc., the co-issuer of the Senior Subordinated Notes, is not included since it has no operations.

 

  * Earnings were insufficient to cover fixed charges by $8.5 million, $7.6 million and $115.5 million for the fiscal years ended June 30, 2003, 2002 and 2001, respectively.