Attached files
Exhibit 12.1
NATIONAL FINANCIAL PARTNERS CORP.
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED DIVIDENDS
(Amounts in thousands of dollars, except ratios)
| Six Months Ended June 30, 2011 |
Years Ended December 31, | |||||||||||||||||||||||
| 2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||||||
| Income (loss) before income taxes (a) |
$ | 16,487 | $ | 69,039 | $ | (567,770 | ) | $ | 41,809 | $ | 91,956 | $ | 101,361 | |||||||||||
| Add: |
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| Interest Expense(a) |
$ | 7,004 | $ | 15,662 | $ | 18,187 | $ | 19,832 | $ | 16,587 | $ | 6,291 | ||||||||||||
| Amortization of debt-related expenses |
741 | 2,871 | 2,380 | 1,932 | 1,723 | 559 | ||||||||||||||||||
| Appropriate portion of rents(b) |
3,286 | 7,019 | 9,297 | 7,306 | 5,400 | 4,280 | ||||||||||||||||||
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| 11,031 | 25,552 | 29,864 | 29,070 | 23,710 | 11,130 | |||||||||||||||||||
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| Earnings available for fixed charges |
$ | 27,518 | $ | 94,591 | $ | (537,906 | ) | $ | 70,879 | $ | 115,666 | $ | 112,491 | |||||||||||
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| Fixed Charges: |
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| Interest Expense(a) |
$ | 7,004 | $ | 15,662 | $ | 18,187 | $ | 19,832 | $ | 16,587 | $ | 6,291 | ||||||||||||
| Amortization of debt-related expenses |
741 | 2,871 | 2,380 | 1,932 | 1,723 | 559 | ||||||||||||||||||
| Appropriate portion of rents(b) |
3,286 | 7,019 | 9,297 | 7,306 | 5,400 | 4,280 | ||||||||||||||||||
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| Total Fixed Charges |
$ | 11,031 | $ | 25,552 | $ | 29,864 | $ | 29,070 | $ | 23,710 | $ | 11,130 | ||||||||||||
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| Ratio of Earnings to Combined Fixed Charges and Preferred Dividends (c) |
2.49x | 3.70x | N/M | 2.44x | 4.88x | 10.11x | ||||||||||||||||||
N/M indicates the metric is not meaningful
| (a) | Interest expense and Income before income taxes exclude interest expense accrued on uncertain tax positions. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense. As of June 30, 2011, the Company had accrued interest related to unrecognized tax benefits of $0.6 million. |
| (b) | Portion of rental expenses which is deemed representative of an interest factor, which is approximately twenty percent of total rental expense. |
| (c) | Earnings for the year ended December 31, 2009 were inadequate to cover fixed charges and earnings available for fixed charges must be approximately $29.9 million in order to attain a ratio of earnings to fixed charges and preferred dividends of one-to-one. |