EX-12.1 5 d373261dex121.htm STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Statement of Computation of Ratio of Earnings to Fixed Charges

Exhibit 12.1

Zayo Group, LLC

Ratio of Earnings to Fixed Charges

(dollars in thousands)

 

    Year ended June 30,     Nine months  ended
March 31, 2012
 
    2008     2009     2010     2011    

Calculation of Earnings

         

Pre-Tax Income From Continuing Operations

  $ (4,103   $ (11,923   $ (9,222   $ 7,548      $ 18,192   

Fixed Charges

    7,678        17,117        22,396        38,211        39,338   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Pre-Tax Income From Continuing Operations and Fixed Charges

  $ 3,575      $ 5,194      $ 13,174      $ 45,759      $ 57,530   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Calculation of Fixed Charges

         

Interest Expense

    6,287        15,245        18,692        33,414        35,122   

Interest Factor in Rental Expense (1)

    1,391        1,872        3,704        4,797        4,216   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Fixed Charges

  $ 7,678      $ 17,117      $ 22,396      $ 38,211      $ 39,338   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ratio of Earnings to Fixed Charges

    0.47        0.30        0.59        1.20        1.46   

Deficiency

  $ (4,103   $ (11,923   $ (9,222     n/a        n/a   

Pro-forma adjustments:

         

Estimated decrease in interest expense from refinanced indebtedness

        $ (6,916   $ (5,252

Total pro forma fixed charges

        $ 31,295      $ 34,086   

Pro forma ratio of earnings to fixed charges

          1.46        1.69   

 

1

The portion of total rental expense that represents the interest factor is estimated to be 12.5 percent.

Note: Because a portion of the proceeds from the offering of 8.125% senior secured first-priority notes due 2020 was used to refinance the Company’s $350.0 million senior secured note balance outstanding on July 2, 2012 (the “Previous Secured Indebtedness”) and the Company’s ratio of earnings to fixed charges would change by ten percent or more as a result of such repayment, the Company is presenting its pro forma ratio of earnings to fixed charges. The adjustments to derive the pro forma ratio are limited to the net change in interest resulting from the refinancing. As only a portion of the proceeds from the offering of 8.125% senior secured first-priority notes due 2020 was used to retire Previous Secured Indebtedness, only the related portion of the interest has been used in calculating the pro forma adjustment.

In computing the pro forma ratio, the historical ratio is adjusted by the pro forma interest expense adjustment which is calculated as follows:

 

  (1) add to historical fixed charges the increase in interest costs resulting from the issuance of the portion of the 8.125% senior secured first-priority notes due 2020 which were used to retire Previous Secured Indebtedness; and

 

  (2) deduct from historical fixed charges the decrease in interest costs resulting from the retirement of Previous Secured Indebtedness.

The pro forma ratio of earnings to fixed charges does not give pro forma effect to the Company’s recent acquisitions.