EX-12.1 8 dex121.htm STATEMENT RE COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES Statement re Computation of Ratios of Earnings to Fixed Charges

Exhibit 12.1

Providence Service Corporation

Ratio of Earnings to Fixed Charges

 

     For the Years Ended December 31,  
     2004    2005    2006    2007    2008  

Earnings:

              

Income (loss) before income taxes and minority interest

   $ 11,320,427    $ 15,732,408    $ 16,042,310    $ 24,110,655    $ (167,916,215 )

Fixed charges

     2,517,835      4,091,938      5,149,797      9,311,319      29,036,528  
                                    

Earnings (losses)

   $ 13,838,262    $ 19,824,346    $ 21,192,107    $ 33,421,974    $ (138,879,687 )
                                    

Fixed charges:

              

Interest expense

   $ 432,729    $ 1,033,019    $ 855,288    $ 3,071,537    $ 19,578,404  

Interest element of rentals

     2,085,106      3,058,919      4,294,509      6,239,782      9,458,124  
                                    

Fixed charges

   $ 2,517,835    $ 4,091,938    $ 5,149,797    $ 9,311,319    $ 29,036,528  
                                    

Ratio of earnings (losses) to fixed charges (1)

     5.50      4.84      4.12      3.59      N/A  

 

(1) For purposes of computing the ratio of earnings to fixed charges, earnings consist of income before income taxes and minority interest, fixed charges, amortization of capitalized interest and distributed income of equity investees less interest capitalized, income from equity investee and distributions to minority holders. Fixed charges consist of interest expense, capitalized interest, and the portion of rentals deemed to be interest. Earnings were not sufficient to cover fixed charges by approximately $167.9 million for the twelve months ended December 31, 2008.