Exhibit 12.1
KEANE GROUP, INC.
Computation of Ratio of Earnings to Fixed Charges
(in millions and unaudited)
Nine Months Ended September 30, 2017 | Fiscal 2016 | Fiscal 2015 | Fiscal 2014 | |||||||||||||
Earnings: | ||||||||||||||||
Pre-tax (loss) income from continuing operations (1) | $ | (78.2 | ) | $ | (187.1 | ) | $ | (64.6 | ) | $ | (45.6 | ) | ||||
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Plus: fixed charges | ||||||||||||||||
Interest expense, net (2) | 51.9 | 38.3 | 23.4 | 10.5 | ||||||||||||
Amortized premiums | 3.2 | 8.4 | 6.7 | 16.2 | ||||||||||||
Portion of rent expense deemed to be interest (3) | 2.8 | 3.0 | 2.1 | 2.4 | ||||||||||||
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Total fixed charges | 57.9 | 49.7 | 32.2 | 29.1 | ||||||||||||
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Earnings: | $ | (20.3 | ) | $ | (137.4 | ) | $ | (32.4 | ) | $ | (16.5 | ) | ||||
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Fixed Charges: | $ | 57.9 | $ | 49.7 | $ | 32.2 | $ | 29.1 | ||||||||
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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 includepre-tax income from continuing operations plus fixed charges. |
(2) | Interest expense, net during the nine months ended September 30, 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 beone-third of operating lease rentals). |
(4) | Due to losses in the first nine months ended September 30, 2017, fiscal 2016, fiscal 2015 and fiscal 2014, the ratio coverage was less than 1:1 in each of those periods. The Company would have needed to generate additional earnings of $78.2 million, $187.1 million, $64.6 million and $45.6 million to achieve a coverage ratio of 1:1 during those periods. |