Attached files

file filename
10-Q - 10-Q - NCO Group, Inc.a11-9477_110q.htm
EX-32.2 - EX-32.2 - NCO Group, Inc.a11-9477_1ex32d2.htm
EX-31.2 - EX-31.2 - NCO Group, Inc.a11-9477_1ex31d2.htm
EX-31.1 - EX-31.1 - NCO Group, Inc.a11-9477_1ex31d1.htm
EX-32.1 - EX-32.1 - NCO Group, Inc.a11-9477_1ex32d1.htm

Exhibit 12

 

NCO Group, Inc.

Ratio of Earnings to Fixed Charges

(in thousands, except for ratios)

 

 

 

For the Three Months Ended

 

 

 

March 31,

 

 

 

2011(1)(2)

 

2010(1)(3)

 

Earnings:

 

 

 

 

 

Add:

 

 

 

 

 

Loss before income taxes and noncontrolling interest

 

$

(41,396

)

$

(11,298

)

Fixed charges

 

27,360

 

29,540

 

 

 

(14,036

)

18,242

 

Subtract:

 

 

 

 

 

Interest capitalized

 

99

 

 

Distributions to noncontrolling interest holders

 

883

 

1,264

 

 

 

982

 

1,264

 

Earnings

 

$

(15,018

)

$

16,978

 

 

 

 

 

 

 

Fixed Charges:

 

 

 

 

 

Interest expense

 

$

21,828

 

$

23,601

 

Interest capitalized

 

99

 

 

Portion of rentals deemed to be interest

 

5,433

 

5,939

 

 

 

$

27,360

 

$

29,540

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

(0.5

)x

0.6

x

 


(1)

For the three months ended March 31, 2011 and 2010, the Company’s ratio of earnings to fixed charges indicated a less than one-to-one coverage. The deficiency was a result of earnings that were $42.4 million and $12.6 million, respectively, less than fixed charges.

(2)

Loss before income taxes and noncontrolling interest included restructuring charges of $12.2 million and an $18.6 write-down of the value of certain portfolios of purchased accounts receivable.

(3)

Loss before income taxes and noncontrolling interest included restructuring charges of $1.4 million.