Exhibit 12.1
For purposes of calculating the ratio of earnings to fixed charges, earnings consist of pretax income from continuing operations less undistributed earnings from unconsolidated affiliates (net of dividends) plus amortization of capitalized interest and fixed charges (excluding capitalized interest). Fixed charges consist of interest incurred (whether expensed or capitalized), amortization of debt expense, and that portion of rental expense on operating leases deemed to be the equivalent of interest. The following table sets forth Core Laboratories N.V.’s ratio of earnings to fixed charges for each of the periods indicated:
CORE LABORATORIES AND SUBSIDIARIES
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
(In thousands, except ratio amounts)
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
(In thousands, except ratio amounts)
Nine months ended | ||||||||||||||||||||||||||||
Year ended December 31, | September 30, | |||||||||||||||||||||||||||
2001 | 2002 | 2003 | 2004 | 2005 | 2005 | 2006 | ||||||||||||||||||||||
Fixed Charges: | ||||||||||||||||||||||||||||
Interest on debt and capitalized leases | 7,921,000 | 7,603,000 | 7,669,000 | 8,275,000 | 8,277,000 | 6,034,000 | 4,785,000 | |||||||||||||||||||||
Amortization of debt discount and expense | 544,000 | 247,000 | 168,000 | 255,000 | 685,000 | 228,000 | 86,000 | |||||||||||||||||||||
Interest element of rentals | 2,900,461 | 2,538,049 | 3,054,580 | 3,285,846 | 3,173,122 | 2,284,196 | 2,607,269 | |||||||||||||||||||||
Total Fixed Charges | 11,365,461 | 10,388,049 | 10,891,580 | 11,815,846 | 12,135,122 | 8,546,196 | 7,478,269 | |||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||||||
Consolidated net income | 20,632,000 | (9,062,000 | ) | 18,700,000 | 12,290,000 | 31,211,000 | 26,462,000 | 57,489,000 | ||||||||||||||||||||
Addback: | ||||||||||||||||||||||||||||
Extraordinary charge/Cumm change in Acctg Principle | — | 15,540,000 | — | — | — | — | — | |||||||||||||||||||||
Loss from discontinued operation | 2,810,000 | 3,116,000 | 2,092,000 | 15,732,000 | 506,000 | — | — | |||||||||||||||||||||
Consolidated provision for income taxes | 9,103,000 | 5,782,000 | 7,457,000 | 10,217,000 | 14,925,000 | 11,834,000 | 24,521,000 | |||||||||||||||||||||
Fixed charges less interest capitalized | 11,365,461 | 10,388,049 | 10,891,580 | 11,815,846 | 12,135,122 | 8,546,196 | 7,478,269 | |||||||||||||||||||||
Subtotal Earnings | 43,910,461 | 25,764,049 | 39,140,580 | 50,054,846 | 58,777,122 | 46,842,196 | 89,488,269 | |||||||||||||||||||||
Less: Undistributed earning of less-than-50% owned affiliates | 150,000 | 161,000 | 52,000 | (265,000 | ) | 36,000 | 44,000 | (53,000 | ) | |||||||||||||||||||
Total Earnings | 43,760,461 | 25,603,049 | 39,088,580 | 50,319,846 | 58,741,122 | 46,798,196 | 89,541,269 | |||||||||||||||||||||
Ratio (Earnings Divided by Fixed Charges) | 3.9 | 2.5 | 3.6 | 4.3 | 4.8 | 5.5 | 12.0 | |||||||||||||||||||||