Exhibit 12.1
KEANE GROUP, INC.
Computation of Ratio of Earnings to Fixed Charges
(in millions and unaudited)
Fiscal 2017 | Fiscal 2016 | Fiscal 2015 | Fiscal 2014 | |||||||||||||||||
Earnings: | ||||||||||||||||||||
Pre-tax (loss) income from continuing operations (1) | $ | (36.0 | ) | $ | (187.1 | ) | $ | (64.6 | ) | $ | (45.6 | ) | ||||||||
Plus: fixed charges | ||||||||||||||||||||
Interest expense, net (2) | 59.2 | 38.3 | 23.4 | 10.5 | ||||||||||||||||
Amortized premiums | 4.7 | 8.4 | 6.7 | 16.2 | ||||||||||||||||
Portion of rent expense deemed to be interest (3) | 3.9 | 3.0 | 2.1 | 2.4 | ||||||||||||||||
Total fixed charges | 67.8 | 49.7 | 32.2 | 29.1 | ||||||||||||||||
Earnings: | $ | 31.8 | $ | (137.4 | ) | $ | (32.4 | ) | $ | (16.5 | ) | |||||||||
Fixed Charges: | $ | 67.8 | $ | 49.7 | $ | 32.2 | $ | 29.1 | ||||||||||||
Ratio of earnings to fixed charges (4) | - | - | - | - | ||||||||||||||||
_________________________ |
(1) | For the purpose of determining the ratio of earnings to fixed charges, earnings available for fixed charges include pre-tax income from continuing operations plus fixed charges. |
(2) | Interest expense, net during the twelve months ended December 31, 2017 includes $15.8 million of prepayment penalties and $15.3 million in write-offs of deferred financing cost, incurred by the Company in connection with the refinancing and early debt extinguishment of certain of its indebtedness. |
(3) | Fixed charges include the portion of operating lease rentals representative of the interest factor (deemed to be one-third of operating lease rentals). |
(4) | The ratio coverage was less than 1:1 in each of fiscal 2017, fiscal 2016, fiscal 2015 and fiscal 2014. The Company would have needed to generate additional earnings of $36.0 million, $187.1 million, $64.6 million and $45.6 million, respectively, to achieve a coverage ratio of 1:1 during those periods. |