EX-12.1 4 ex121.htm COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED DIVIDENDS ex121.htm
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)
 
 
  
Six Months Ended
June 30,
2010
    
Years Ended December 31,
  
 
  
    
2009
    
2008
    
2007
    
2006
    
2005
  
Earnings Available for Fixed Charges:
  
                                              
Income (loss) before income taxes (a)
  
$
33,352
  
  
$
  (567,770
) 
  
$
      41,809
  
  
$
      91,956
  
  
$
      101,361
  
  
$
      97,013
  
 
  
                                              
Add:
  
                                              
Interest Expense (a)
  
$
8,481
  
  
$
18,187
  
  
$
19,832
  
  
$
16,587
  
  
$
6,291
  
  
$
4,110
  
Amortization of debt-related expenses
  
  
979
  
    
2,380
  
    
1,932
  
    
1,723
  
    
559
  
    
920
  
Appropriate portion of rents (b)
  
  
3,771
  
    
9,297
  
    
7,306
  
    
5,400
  
    
4,280
  
    
3,640
  
Total Fixed Charges
  
  
13,231
  
    
29,864
  
    
29,070
  
    
23,710
  
    
11,130
  
    
8,670
  
Earnings available for fixed charges
  
$
46,583
  
  
$
(537,906
) 
  
$
70,879
  
  
$
115,666
  
  
$
112,491
  
  
$
105,683
  
 
  
                                              
Fixed Charges:
  
                                              
Interest Expense (a)
  
$
8,481
  
  
$
18,187
  
  
$
19,832
  
  
$
16,587
  
  
$
6,291
  
  
$
4,110
  
Amortization of debt-related expenses
  
  
979
  
    
2,380
  
    
1,932
  
    
1,723
  
    
559
  
    
920
  
Appropriate portion of rents (b)
  
  
3,771
  
    
9,297
  
    
7,306
  
    
5,400
  
    
4,280
  
    
3,640
  
Total Fixed Charges
  
$
13,231
  
  
$
29,864
  
  
$
29,070
  
  
$
23,710
  
  
$
11,130
  
  
$
8,670
  
 
  
                                              
Ratio of Earnings to Combined Fixed Charges and Preferred Dividends (c)
  
  
3.52
x 
    
NM
  
    
2.44
x 
    
4.88
x 
    
10.11
x 
    
12.19
x 
 
NM 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 June 30, 2010, the Company had accrued interest related to unrecognized tax benefits of $0.6 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 are 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 fixed charges and preferred dividends of one-to-one.