EX-12.1 3 a17-19035_1ex12d1.htm EX-12.1

Exhibit 12.1

 

RATIO OF EARNINGS TO FIXED CHARGES(1)

 

We present below our ratio of earnings to fixed charges, which is computed by dividing earnings, which is the sum of income (loss) before income taxes and fixed charges, by fixed charges. Fixed charges represent interest expense, amortization of debt issuance costs, and an appropriate portion of rentals representative of the interest factor.

 

 

 

For the Twelve Month Period Ended
December 31,

 

For the Six
Month
Period
Ended
June 30,

 

 

 

2012

 

2013

 

2014

 

2015

 

2016

 

2017

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) Before Income Taxes

 

$

(527

)

$

43,909

 

$

25,736

 

$

6,711

 

$

(21,892

)

$

(8,662

)

Add Fixed Charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense(2)

 

35,086

 

26,142

 

17,801

 

17,323

 

19,437

 

12,210

 

Amortization of Debt Issuance Costs

 

639

 

639

 

1,118

 

485

 

485

 

653

 

Appropriate Portion of Rentals Representative of the Interest Factor(3)

 

17,075

 

15,454

 

15,208

 

15,308

 

14,807

 

8,309

 

Total Fixed Charges

 

52,800

 

42,235

 

34,127

 

33,116

 

34,729

 

21,172

 

Earnings

 

52,273

 

86,144

 

59,863

 

39,827

 

12,837

 

12,510

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of Earnings to Fixed Charges(4)

 

—

 

2.0

 

1.8

 

1.2

 

—

 

—

 

 

(1)         The ratio of earnings to fixed charges is computed by dividing earnings, which is the sum of income (loss) before income taxes and fixed charges, by fixed charges. Fixed charges represent interest expense, amortization of debt issuance costs, and an appropriate portion of rentals representative of the interest factor.

 

(2)         In addition to interest expense on long-term debt, also includes interest expenses on short-term borrowings including bank call loans, securities lending, and repurchase agreements which generally have a corresponding asset that generates interest income that substantially offsets or exceeds the aforementioned interest expense.

 

(3)         The percent of rent included in the computation is a reasonable approximation of the interest factor.

 

(4)         Due to the Company’s pre-tax loss in the years ended December 31, 2012 and 2016 and for the six month period ended June 30, 2017, the ratio coverage was less than 1:1 in these periods. The Company would have needed to generate additional earnings of $527,000 in 2012 and $21.9 million in 2016, and $8.7 million for the six month period ended June 30, 2017 to achieve a coverage of 1:1.