EX-12.1 5 dex121.htm COMPUTATION OF RATIO EARNINGS Computation of Ratio Earnings

EXHIBIT 12.1

FLOTEK INDUSTRIES, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

Unaudited

(dollars in thousands)

 

     Year Ended December 31,     Three Months
Ended  March 31,
2010		  
     2005    2006    2007    2008     2009    
                                   

COMPUTATION OF EARNINGS:

                

Income (loss) from continuing operations before income taxes and fixed charges

    $ 9,373    $ 17,933    $ 27,141    $ (44,660 )    $ (48,224 )    $ (11,514 ) 

Add:

                

Fixed charges

      881      1,121      3,738      14,296        16,071        4,394   

Subtract:

                

Minority interest in pretax income of subsidiaries that have not incurred fixed charges

      —        —        916      —          —          —     
                                             

Earnings (loss), as defined

    $ 10,254    $ 19,054    $ 29,963    $ (30,364 )    $ (32,153 )    $ (7,120 ) 
                                             

COMPUTATION OF FIXED CHARGES AND PREFERRED STOCK DIVIDENDS:

                

Interest expense (no capitalized interest)

    $ 827    $ 1,005    $ 3,501    $ 13,813      $ 15,431      $ 4,218   

Estimate of interest within rental expense(1)

      54      116      237      483        640        176   
                                             

Fixed charges, as defined

      881      1,121      3,738      14,296        16,071        4,394   

Dividends on preferred stock and accretion of discount(2)

      —        —        —        —          2,231        2,628   
                                             

Combined fixed charges, preferred stock dividends and accretion of discount

    $ 881    $ 1,121    $ 3,738    $ 14,296      $ 18,302      $ 7,022   
                                             

Ratio of earnings to fixed charges

      11.64      17.00      8.02      N/A        N/A        N/A   
                                             

Deficiency of earnings to cover fixed charges

      N/A      N/A      N/A    $ (44,660 )    $ (48,224 )    $ (11,514 ) 
                                             

Ratio of earnings to fixed charges and preferred stock dividends

      11.64      17.00      8.02      N/A        N/A        N/A   
                                             

Deficiency of earnings to cover combined fixed charges and preferred stock dividends

      N/A      N/A      N/A    $ (44,660 )    $ (50,455 )    $ (14,142 ) 
                                             

 

(1) One third of rental expense is deemed to be representative of interest.
(2) Amount has not been grossed up to a pre-tax amount due to a negative effective tax rate.