Attached files

file filename
EX-32 - EXHIBIT 32 - HC2 HOLDINGS, INC.dex32.htm
EX-31 - EXHIBIT 31 - HC2 HOLDINGS, INC.dex31.htm
EX-10.1 - EXHIBIT 10.1 - HC2 HOLDINGS, INC.dex101.htm
EX-23.1 - EXHIBIT 23.1 - HC2 HOLDINGS, INC.dex231.htm
EX-21.1 - EXHIBIT 21.1 - HC2 HOLDINGS, INC.dex211.htm
10-K - FORM 10-K FOR THE FISCAL YEAR ENDED DECEMBER 31, 2010 - HC2 HOLDINGS, INC.d10k.htm

Exhibit 12.1

Computation of Ratio of Earnings to Fixed Charges

(in thousands)

 

     Predecessor            Successor  
     Year Ended December 31,     Six Months
Ended
July 1,
2009
           Six Months
Ended
December 31,
2009
     Year
Ended
December 31,
2010
 
     2006     2007      2008            

Earnings:

                   

Pre-tax income (loss) from continuing operations before adjustment for income (loss) of equity investees

   $ (197,354   $ 15,933       $ (16,721   $ 459,864           $ 1,045       $ (19,432

Add: Fixed charges

     61,078        67,305         59,998        16,747             20,705         42,722   

Add: Distributed income of equity investees

     —          —           —          —               —           —     

Less: Equity investment

     —          —           —          —               —           —     
                                                       

Total earnings before fixed charges

   $ (136,276   $ 83,238       $ 43,277      $ 476,611           $ 21,750       $ 23,290   
                                                       

Fixed charges:

                   

Interest expense

   $ 53,920      $ 60,709       $ 53,971      $ 14,093           $ 17,278       $ 35,490   

Accretion (amortization)on debt discount/premium, net

     1,732        449         (583     (189          3         183   

Estimated interest component of rent expense

     5,426        6,147         6,610        2,843             3,424         7,049   
                                                       

Total fixed charges

   $ 61,078      $ 67,305       $ 59,998      $ 16,747           $ 20,705       $ 42,722   
                                                       

Ratio of earnings to fixed charges(1)

     <1        1.01         <1        28.46             1.05         <1   

 

(1) The ratio of earnings to fixed charges is computed by dividing the sum of pre-tax income from continuing operations (before adjustment for minority interests in consolidated subsidiaries and loss from equity investees) plus fixed charges, by fixed charges. Fixed charges consist of interest charges, whether expensed or capitalized, and that portion of rental expense we believe to be representative of interest.