EX-11 6 c79322s4exv11.htm EX-11 STATEMENTS RE COMPUTATION OF RATIOS exv11
 

Exhibit 11

Rural Cellular Corporation, Inc.
Computation of Ratio of Earnings to Fixed Charges
(Dollars in thousands)

                                                       
          Years ended December 31,   Six months
ended
         
 
          1998   1999   2000   2001   2002   June 30,
2003
         
 
 
 
 
 
Earnings (loss)
                                               
 
Pretax income (loss)
    (6,624 )     4,887       (39,253 )     (49,212 )     21,162       22,699  
 
Add back: fixed charges as disclosed below
    18,511       27,846       89,943       132,027       113,502       26,688  
 
Less: capitalized interest
    (148 )     (97 )     (420 )                  
 
 
   
     
     
     
     
     
 
   
Earnings (loss) as adjusted
    11,739       32,636       50,270       82,815       134,664       49,387  
Computation of fixed charges
                                               
 
Interest expense
    17,599       26,649       87,590       129,260       110,597       25,235  
 
Capitalized interest
    148       97       420                    
 
Portion of rent expense representative of interest factor
    764       1,100       1,933       2,767       2,905       1,453  
 
 
   
     
     
     
     
     
 
   
Total fixed charges
    18,511       27,846       89,943       132,027       113,502       26,688  
Earnings (deficiency) to fixed charges
    (6,772 )     4,790       (39,673 )     (49,212 )     21,162       22,699  
Ratio of earnings to fixed charges
          1.17X                   1.19X       1.85X  

    Fixed charges consist of all interest, whether expensed or capitalized, amortization of debt costs, and the portion of rent expense representing interest.

    Earnings consist of income before income tax, cumulative effect adjustment, and preferred stock dividends plus fixed charges reduced by capitalized interest.

    The ratio of earnings to fixed charges is computed by dividing fixed charges into earnings.