EX-12.1 43 dex121.htm STATEMENT REGARDING COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Statement Regarding Computation of Ratio of Earnings to Fixed Charges

Exhibit 12.1

 

Hawaiian Telcom Communications, Inc.

Ratio of Earnings to Fixed Charges

 

     Predecessor

    Company

    Pro Forma

 
     Years Ended December 31,

    Nine Months
Ended
September
30, 2004


    Period from
January 1 to
May 2, 2005


   

Period
from

May 21 to

December
31, 2004


    Period
from
May 21 to
September
30, 2004


    Nine
Months
Ended
September
30, 2005


   

Year
Ended
December

31, 2004


   

Nine
Months
Ended
September

30, 2005


 
     2000

    2001

    2002

    2003

    2004

               

Income before provision for income taxes and cumulative effect of accounting changes

   166,200     121,500     78,700     27,100     57,400     45,200     24,800     (17,373 )   (3,430 )   (128,834 )   (130,770 )   (143,552 )

Interest expense

   35,800     39,900     37,400     33,700     36,800     27,000     11,700     —       —       51,604     111,200     88,671  

Amortization of previously capitalized interest

   200     200     200     300     100     100     100     —       —       100     100     100  

Lease expense

   8,500     6,900     9,900     9,300     6,800     4,589     2,197     —       —       2,129     6,800     4,326  

Factor

   33 %   33 %   33 %   33 %   33 %   33 %   33 %   33 %   33 %   33 %   33 %   33 %
    

 

 

 

 

 

 

 

 

 

 

 

Interest factor on rentals (2)

   2,800     2,300     3,300     3,100     2,300     1,530     732     —       —       710     2,267     1,442  

Equity in (income) loss of unconsolidated businesses

   (5,800 )   2,900     100     —       —       —       —       —       —       —       —       —    

Dividends from equity investees

   18,700     1,500     —       —       —       —       —       —       —       —       —       —    
    

 

 

 

 

 

 

 

 

 

 

 

Earnings available for fixed charges

   217,900     168,300     119,700     64,200     96,600     73,830     37,332     (17,373 )   (3,430 )   (76,420 )   (17,203 )   (53,339 )
    

 

 

 

 

 

 

 

 

 

 

 

Interest expense

   35,800     39,900     37,400     33,700     36,800     27,000     11,700     —       —       51,604     111,200     88,671  

Capitalized interest

   400     400     300     200     100     90     80     —       —       804     90     884  

Interest factor on rentals (2)

   2,800     2,300     3,300     3,100     2,300     1,530     732     —       —       710     2,267     1,442  
    

 

 

 

 

 

 

 

 

 

 

 

Fixed charges

   39,000     42,600     41,000     37,000     39,200     28,620     12,512     —       —       53,118     113,557     90,997  
    

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

   5.6     4.0     2.9     1.7     2.5     2.6     3.0     NA (3)   NA (3)   NA     NA     NA  
    

 

 

 

 

 

 

 

 

 

 

 

Deficiency of earnings to fixed charges

   NA     NA     NA     NA     NA     NA     NA     NA (3)   NA (3)   129,538     130,760     144,336  
    

 

 

 

 

 

 

 

 

 

 

 

 

(1) The ratio of earnings to fixed charges is computed by dividing earnings by fixed charges. For this purpose, earnings includes pre-tax income from continuing operations and fixed charges include interest, whether expensed or capitalized, and an estimate of interest within rental expense.

 

(2) The Company uses one-third of rental expense as an estimation of the interest factor on its rental expense.

 

(3) There were no fixed charges for the Company during 2004.