EX-12.1 4 d341109dex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

Exhibit 12.1

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

Kforce’s ratio of earnings to fixed charges for each of the periods indicated is as follows:

 

    

Fiscal Year Ended December 31,

(in thousands)

 
     2007      2008     2009      2010      2011  

Computation of Earnings

             

Pre-tax income (loss) from continuing operations

     60,779         (87,193     21,893         33,324         43,311   

Add: Fixed charges

     8,497         5,764        4,774         3,914         3,317   

Add: Amortization of capitalized interest

     46         115        119         125         142   

Add Distributed income of equity investees

     —           —          86         176         39   

Add: Share of pre-tax losses of equity investees

     —           —          —           —           96   

Less: Interest capitalized

     312         26        20         79         52   

Less: Preference security dividend requirements of consolidated subsidiaries

     —           —          —           —           —     

Less: Non-controlling interest in pre-tax income of subsidiaries that have not incurred fixed charges

     —           —          —           —           —     
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total earnings (loss)

     69,010         (81,340     26,852         37,460         46,853   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Computation of Fixed Charges

             

Interest expensed and capitalized

     4,762         2,206        1,306         1,202         1,169   

Amortized premiums, discounts and capitalized expenses related to indebtedness

     153         151        151         151         139   

Estimate of the interest within rental expense

     3,582         3,407        3,317         2,561         2,009   

Preference security dividend requirements of consolidated subsidiaries

     —           —          —           —           —     
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total fixed charges

     8,497         5,764        4,774         3,914         3,317   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Ratio of earnings to fixed charges

     8.1         (1)(2)        5.6         9.6         14.1   
  

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

 

(1) During 2008, we recognized a goodwill and other intangible asset impairment charge of $129,409, which resulted in a pre-tax net loss from continuing operations for 2008.
(2) Due to our losses in 2008, the coverage ratio was less than 1:1. We must have generated additional earnings before income taxes of $87,104 in 2008 to achieve a coverage ratio of 1:1.