EX-12.1 3 d412464dex121.htm COMPUTATION OF RATIO OF EARNINGS Computation of Ratio of Earnings

Exhibit 12.1

NATIONAL FINANCIAL PARTNERS CORP.

COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES

AND PREFERRED DIVIDENDS

(Amounts in thousands of dollars, except ratios)

 

     Nine Months Ended
September 30, 2012
     Years Ended December 31,  
        2011      2010      2009     2008      2007  

Income (loss) before income taxes (a)

   $ 14,069       $ 65,319       $ 69,039       $ (567,770   $ 41,809       $ 91,956   

Add:

                

Interest Expense(a)

   $ 11,337       $ 14,250       $ 15,662       $ 18,187      $ 19,832       $ 16,587   

Amortization of debt-related expenses

     1,102         1,483         2,871         2,380        1,932         1,723   

Appropriate portion of rents(b)

     5,039         6,648         7,019         9,297        7,306         5,400   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 
     17,478         22,381         25,552         29,864        29,070         23,710   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Earnings available for fixed charges

   $ 31,547       $ 87,700       $ 94,591       $ (537,906   $ 70,879       $ 115,666   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Fixed Charges:

                

Interest Expense(a)

   $ 11,337       $ 14,250       $ 15,662       $ 18,187      $ 19,832       $ 16,587   

Amortization of debt-related expenses

     1,102         1,483         2,871         2,380        1,932         1,723   

Appropriate portion of rents(b)

     5,039         6,648         7,019         9,297        7,306         5,400   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Total Fixed Charges

   $ 17,478       $ 22,381       $ 25,552       $ 29,864      $ 29,070       $ 23,710   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Ratio of Earnings to Combined Fixed Charges and Preferred Dividends (c)

     1.80x         3.92x         3.70x         N/M        2.44x         4.88x   

 

N/M indicates the metric is not meaningful
(a) Interest expense and Income before income taxes exclude interest expense accrued on uncertain tax positions. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense. As of September 30, 2012, the Company had accrued interest related to unrecognized tax benefits of $6.6 million.
(b) Portion of rental expenses which is deemed representative of an interest factor, which is approximately twenty percent of total rental expense.
(c) Earnings for the year ended December 31, 2009 were inadequate to cover fixed charges and earnings available for fixed charges must be approximately $29.9 million in order to attain a ratio of earnings to combined fixed charges and preferred dividends of one-to-one.