EX-12 2 exhibit12.htm EXHIBIT 12 Exhibit 12

EXHIBIT 12  Computation of Ratio of Earnings to Fixed Charges and Preferred Stock Dividends

Unaudited

(dollars in thousands)

Year ended December 31,

2006

2007

2008

2009

2010

COMPUTATION OF EARNINGS

Income (loss) from continuing operations before income taxes and fixed charges

$

17,933

$

27,141

$

(44,741)

$

(48,317)

$

(49,010)

Add:

Fixed charges

1,121

3,738

14,377

16,164

20,073

Subtract:

Minority interest in pretax income of subsidiaries that have not incurred fixed charges

-

916

-

-

-

Earnings (loss), as defined

$

19,054

$

29,963

$

(30,364)

$

(32,153)

$

(28,937)

COMPUTATION OF FIXED CHARGES AND PREFFERED STOCK DIVIDENDS:

Interest expense (no capitalized interest)

$

1,005

$

3,501

$ 13,894

$

15,524

$

19,399

Estimate of interest within rental expense (1)

116

237

483

640

674

Fixed charges, as defined

1,121

3,738

14,377

16,164

20,073

Dividends on preferred stock and accretion of discount (2)

-

-

-

2,231

6,543

Combined fixed charges, preferred stock dividends and accretion of discount

$

1,121

$

3,738

$

14,377

$

18,395

$

26,616

Ratio of earnings to fixed charges

17.00

8.02

N/A

N/A

N/A

Deficiency of earnings to cover fixed charges

N/A

N/A

$

(44,741)

$

(48,317)

$

(49,010)

Ratio of earnings to fixed charges and preferred stock dividends

17.00

8.02

N/A

N/A

N/A

Deficiency of earnings to cover combined fixed charges and preferred stock dividends

N/A

N/A

$

(44,741)

$

(50,548)

$

(55,553)

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

(2) Amount has not been grossed up to a pre-tax amount due to a negative effective tax rate.