EX-12.1 2 dex121.htm EXHIBIT 12.1 Exhibit 12.1

Exhibit 12.1

CALCULATION OF RATIOS OF EARNINGS TO FIXED CHARGES

PAETEC Holding’s ratios of earnings to fixed charges for the fiscal periods shown below were as follows:

 

      Year Ended December 31,     Three Months Ended
March 31,
 
      2005    2006    2007    2008     2009     2009     2010  
     (in thousands)  

Earnings:

                 

Income (loss) before income taxes

   $ 28,598    $ 16,233    $ 18,565    $ (398,098   $ (30,043   $ (2,553   $ (10,479

Plus: Fixed Charges (see below)

     11,374      28,206      69,932      76,673        77,465        18,063        22,876   
                                                     

Total Earnings

   $ 39,972    $ 44,439    $ 88,497    $ (321,425   $ 47,422      $ 15,510      $ 12,397   
                                                     

Fixed Charges:

                 

Interest expense, including amortization of debt issuance costs, debt discounts, and debt premiums

   $ 10,472    $ 27,319    $ 68,373    $ 73,663      $ 74,149      $ 17,224      $ 22,037   

Portion of rental expense deemed to represent interest

     902      887      1,559      3,010        3,316        839        839   
                                                     

Total Fixed Charges

   $ 11,374    $ 28,206    $ 69,932    $ 76,673      $ 77,465      $ 18,063      $ 22,876   
                                                     

Ratio of earnings to fixed charges

     3.51      1.58      1.27      *        *        *        *   
                                                     

Coverage deficiency

   $ —      $ —      $ —      $ (398,098   $ (30,043   $ (2,553   $ (10,479
                                                     

 

* There were insufficient earnings available to cover fixed charges for the years ended December 31, 2008 and 2009 and the three months ended March 31, 2009 and 2010. As a result, the ratio of earnings to fixed charges was less than 1.0 for each of such periods.