EX-12.1 2 w68844exv12w1.htm STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES exv12w1
 

Exhibit 12.1

Statement of Computation of Ratio of Earnings to Fixed Charges (1)

                                                 
                                            Nine Months
                    For the Years Ended December 31,   Ended
    2003   2002   2001   2000   1999   September 30, 2004
Adjusted Earnings (2):
                                               
Earnings (losses) before minority interest and equity income (loss)
  $ (68,998 )   $ (67,876 )   $ (60,362 )   $ (81,531 )   $ (36,691 )   $ (44,621 )
Fixed Charges
    13,394       22,706       32,092       27,055       19,017       8,812  
 
   
 
     
 
     
 
     
 
     
 
     
 
 
Adjusted earnings (losses)
  $ (55,604 )   $ (45,170 )   $ (28,270 )   $ (54,476 )   $ (17,674 )   $ (35,809 )
Fixed Charges:
                                               
Interest expense
  $ 12,173     $ 21,661     $ 30,930     $ 26,619     $ 18,612     $ 7,886  
Assumed interest element included in rent expense (3)
    1,221       1,045       1,162       436       405       926  
 
   
 
     
 
     
 
     
 
     
 
     
 
 
Total Fixed Charges
  $ 13,394     $ 22,706     $ 32,092     $ 27,055     $ 19,017     $ 8,812  
Earnings available to cover fixed charges
  $ (55,604 )   $ (45,170 )   $ (28,270 )   $ (54,476 )   $ (17,674 )   $ (35,809 )
Fixed Charges
    13,394       22,706       32,092       27,055       19,017       8,812  
Ratio (if greater than 1 to 1)
           
Deficit in dollars (if ratio less than 1 to 1)
  $ (68,998 )   $ (67,876 )   $ (60,362 )   $ (81,531 )   $ (36,691 )   $ (44,621 )


(1)   CompuCom sold on October 1, 2004 and treated as discontinued operations as of September 30, 2004. The fixed charge coverage ratio assumes Compucom is excluded for all periods presented.
 
(2)   Adjusted Earnings includes earnings (losses) before income taxes, minority interest and equity (income) loss plus fixed charges. Fixed charges consist of interest expense, including amortization of debt issuance costs, and that portion of rent expense that we believe to be representative of interest.
 
(3)   Total rent expense for the year multiplied by twenty percent. This is the portion of rental expense we believe to be representative of interest.

Pro Forma Ratio of Earnings to Fixed Charges

         
    Year Ended
    December 31,
    2003
Adjusted Earnings (2):
       
Earnings (losses) before minority interest and equity income (loss)
  $ (68,998 )
Fixed Charges
    10,091  
 
   
 
 
Adjusted earnings (losses)
  $ (58,907 )
Fixed Charges:
       
Interest expense
  $ 8,870  
Assumed interest element included in rent expense (3)
    1,221  
 
   
 
 
Total Fixed Charges
  $ 10,091  
Earnings available to cover fixed charges
  $ (58,907 )
Fixed Charges
    10,091  
Ratio (if greater than 1 to 1)
 
Deficit in dollars (if ratio less than 1 to 1)
  $ (47,229 )