EX-12 4 d292715dex12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS Computation of Ratio of Earnings to Fixed Charges and Preferred Stock Dividends

EXHIBIT 12

FLOTEK INDUSTRIES, INC.

COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES

AND PREFERRED STOCK DIVIDENDS

(unaudited, in thousands, except for ratio)

 

    Year ended December 31,  
    2007     2008     2009     2010     2011  

COMPUTATION OF EARNINGS:

          

Income (loss) from continuing operations

          

before income taxes

     $ 27,141         $ (44,741 )       $ (48,317 )       $ (49,010 )       $ 39,270     

Add:

          

Fixed charges less capitalized interest

     3,738         14,377          16,164          20,073          16,691     

Subtract:

          

Minority interest in pretax income of

          

subsidiaries that have not incurred fixed

          

charges

     (916)        -              -              -              -         
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings (loss), as defined

     $     29,963         $     (30,364)         $     (32,153)         $     (28,937)         $     55,961     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

COMPUTATION OF FIXED CHARGES

         

AND PREFERRED STOCK

         

DIVIDENDS:

          

Interest expense including capitalized

          

interest

     $ 3,501         $ 13,894          $ 15,524          $ 19,399          $ 16,019     

Estimate of interest within rental

          

expense (1)

     237         483          640          674          731     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed charges, as defined

     3,738         14,377          16,164          20,073          16,750     

Dividends on preferred stock and

         

accretion of discount (2)

     -              -              2,231          6,543          6,086     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Combined fixed charges, preferred stock

          

dividends and accretion of discount

     $ 3,738         $ 14,377          $ 18,395          $ 26,616          $ 22,836     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of earnings to fixed charges

     8.02        N/A        N/A        N/A        3.34   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Deficiency of earnings to cover fixed

          

charges

     N/A        $ (44,741 )       $ (48,317 )       $ (49,010 )       N/A   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of earnings to fixed charges and

         

preferred stock dividends

     8.02        N/A        N/A        N/A        2.45   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Deficiency of earnings to cover combined

         

fixed charges and preferred stock

          

dividends

     N/A        $ (44,741 )       $ (50,548 )       $ (55,553 )       N/A   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

 

(1)

One third of rental expense is deemed to be representative of interest.

 

(2)

Includes amount of pre-tax earnings required to cover dividends on preferred stock and accretion of discount. Amount has not been grossed up to a pre-tax amount in years in which losses occurred due to a negative effective tax rate.