EX-12 2 ex12_10k.htm EXHIBIT COMPUTATION OF RATIO EARNINGS TO COMBINED FIXED CHARGES EX12_10K


EXHIBIT 12
FLOTEK INDUSTRIES, INC.
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
(unaudited, in thousands, except for ratio)
 
 
Year ended December 31,
 
2008
 
2009
 
2010
 
2011
 
2012
COMPUTATION OF EARNINGS:
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations
before income taxes
$
(44,741
)
 
$
(48,317
)
 
$
(49,010
)
 
$
39,270

 
$
45,458

Add:
 
 
 
 
 
 
 
 
 
Fixed charges less capitalized interest
14,377

 
16,164

  
20,073

 
16,691

 
8,952

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

 
—

  
—

 
—

 
—

Earnings (loss), as defined
$
(30,364
)
 
$
(32,153
)
  
$
(28,937
)
 
$
55,961

 
$
54,410

COMPUTATION OF FIXED CHARGES
AND PREFERRED STOCK
DIVIDENDS:
 
 
 
 
 
 
 
 
 
Interest expense including capitalized interest
$
13,894

 
$
15,524

  
$
19,399

 
$
16,019

 
$
8,194

Estimate of interest within rental expense (1)
483

 
640

  
674

 
731

 
849

Fixed charges, as defined
14,377

 
16,164

  
20,073

 
16,750

 
9,043

Dividends on preferred stock and accretion of discount(2)
—

 
2,231

 
6,543

 
6,086

 
—

Combined fixed charges, preferred stock dividends and accretion of discount
$
14,377

 
$
18,395

 
$
26,616

 
$
22,836

 
$
9,043

Ratio of earnings to fixed charges
N/A

 
N/A

 
N/A

 
3.34

 
6.02

Deficiency of earnings to cover fixed charges
$
(44,741
)
 
$
(48,317
)
 
$
(49,010
)
 
N/A

 
N/A

Ratio of earnings to fixed charges and preferred stock dividends
N/A

 
N/A

 
N/A

 
2.45

 
6.02

Deficiency of earnings to cover combined fixed charges and preferred stock dividends
$
(44,741
)
 
$
(50,548
)
 
$
(55,553
)
 
N/A

 
N/A

(1)
One third of rental expense is deemed to be representative of interest.
(2)
Includes amount of pre-tax earnings required to cover dividends on preferred stock and accretion of discount. Amount has not been grossed up to a pre-tax amount in years in which losses occurred due to a negative effective tax rate.