EX-12.1 2 ex121computationofratioofe.htm EXHIBIT 12.1 Exhibit
Exhibit 12.1

KEANE GROUP, INC.
Computation of Ratio of Earnings to Fixed Charges
(in millions and unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
Fiscal 2017
 
  
Fiscal 2016
 
  
Fiscal 2015
 
  
Fiscal 2014
 
Earnings:
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Pre-tax (loss) income from continuing operations (1)
  
$
(36.0
)
 
  
$
(187.1
)
 
  
$
(64.6
)
 
  
$
(45.6
)
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Plus: fixed charges
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Interest expense, net (2)
  
 
59.2

 
  
 
38.3

 
  
 
23.4

 
  
 
10.5

 
Amortized premiums
  
 
4.7

 
  
 
8.4

 
  
 
6.7

 
  
 
16.2

 
Portion of rent expense deemed to be interest (3)
  
 
3.9

 
  
 
3.0

 
  
 
2.1

 
  
 
2.4

 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Total fixed charges
  
 
67.8

 
  
 
49.7

 
  
 
32.2

 
  
 
29.1

 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Earnings:
  
$
31.8

 
  
$
(137.4
)
 
  
$
(32.4
)
 
  
$
(16.5
)
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Fixed Charges:
  
$
67.8

 
  
$
49.7

 
  
$
32.2

 
  
$
29.1

 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Ratio of earnings to fixed charges (4)
  
 
-

 
  
 
-  

 
  
 
-  

 
  
 
-  

 
_________________________
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
For the purpose of determining the ratio of earnings to fixed charges, earnings available for fixed charges include pre-tax income from continuing operations plus fixed charges.
(2)
Interest expense, net during the twelve months ended December 31, 2017 includes $15.8 million of prepayment penalties and $15.3 million in write-offs of deferred financing cost, incurred by the Company in connection with the refinancing and early debt extinguishment of certain of its indebtedness.
(3)
Fixed charges include the portion of operating lease rentals representative of the interest factor (deemed to be one-third of operating lease rentals).
(4)
The ratio coverage was less than 1:1 in each of fiscal 2017, fiscal 2016, fiscal 2015 and fiscal 2014. The Company would have needed to generate additional earnings of $36.0 million, $187.1 million, $64.6 million and $45.6 million, respectively, to achieve a coverage ratio of 1:1 during those periods.