EX-12.1 3 dex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

Exhibit 12.1

 

US LEC CORP.

STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(DOLLARS IN THOUSANDS)

 

    FISCAL YEAR ENDED DECEMBER 31,

   

NINE MONTHS
ENDED

SEPTEMBER 30,


 
    1999

    2000

    2001

    2002

    2003

    2003

    2004

 

EARNINGS:

                                                       

Income (loss) before minority interest and income taxes

  $ 39,426     $ (141,119 )   $ (63,354 )   $ (45,892 )   $ (14,540 )   $ (13,560 )   $ (13,901 )

Equity method investment earnings (losses)

    —         —         —         —         —         —         —    
   


 


 


 


 


 


 


      39,426       (141,119 )     (63,354 )     (45,892 )     (14,540 )     (13,560 )     (13,901 )

Add:

                                                       

Fixed charges

    4,739       10,421       15,310       12,093       12,408       9,156       14,924  

Amortization of capitalized interest

    —         —         —         —         —         —         —    

Distributed income of equity investees

    —         —         —         —         —         —         —    

Less:

                                                       

Capitalized interest

    —         —         —         —         —         —         —    

Minority interest in pre-tax income of subsidiaries that have not incurred fixed charges

    —         —         —         —         —         —         —    
   


 


 


 


 


 


 


Earnings as adjusted

    44,165       (130,698 )     (48,044 )     (33,799 )     (2,132 )     (4,404 )     1,023  
   


 


 


 


 


 


 


FIXED CHARGES:

                                                       

Third party interest expense

    3,096       7,839       11,870       8,553       8,577       6,351       9,624  

Capitalized interest

    —         —         —         —         —         —         —    

Amortization of loan acquisition costs

    259       690       816       854       1,062       803       3,162  

Estimate of the interest within rental expense

    1,384       1,892       2,624       2,686       2,769       2,002       2,138  
   


 


 


 


 


 


 


Total fixed charges

  $ 4,739     $ 10,421     $ 15,310     $ 12,093     $ 12,408     $ 9,156     $ 14,924  
   


 


 


 


 


 


 


Ratio of earnings to fixed charges/(excess of fixed charges over earnings)

    9.3 x   $ (141,119 )   $ (63,354 )   $ (45,892 )   $ (14,540 )   $ (13,560 )   $ (13,901 )