EX-12.1 51 dex121.htm EXHIBIT 12.1 Exhibit 12.1

Exhibit 12.1

CALCULATION OF RATIOS OF EARNINGS TO FIXED CHARGES

PAETEC Holding’s ratios of earnings to fixed charges were as follows:

 

     Year Ended December 31,     Six Months Ended June 30,  
     2004    2005    2006    2007    2008     2008     2009  
     (in thousands)  

Earnings:

                   

Income (loss) before income taxes

    $ 40,477    $ 28,598    $ 16,233    $ 18,565    $ (398,098 )    $ (24,284 )    $ (18,280 ) 

Plus: Fixed Charges (see below)

      11,706      11,374      28,206      69,932      76,673        37,958        36,208   
                                                    

Total Earnings

    $ 52,183    $ 39,972    $ 44,439    $ 88,497    $ (321,425 )    $ 13,674      $ 17,928   
                                                    

Fixed Charges:

                   

Interest expense, including amortization of debt issuance costs

      10,911      10,472      27,319      68,373      73,663        36,540        34,524   

Portion of rental expense deemed to represent interest

      795      902      887      1,559      3,010        1,418        1,684   
                                                    

Total Fixed Charges

      11,706      11,374      28,206      69,932      76,673        37,958        36,208   

Ratio of earnings to fixed charges

      4.46      3.51      1.58      1.27      *        *        *   
                                                    

Coverage deficiency

    $ —      $ —      $ —      $ —      $ (398,098 )    $ (24,284 )    $ (18,280 ) 
                                                    

 

* There were insufficient earnings available to cover fixed charges for the year ended December 31, 2008 and the six months ended June 30, 2008 and 2009. As a result, the ratio of earnings to fixed charges was less than 1.0 for each of such periods.