EX-12. 3 rdnt_10k-ex1201.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

EXHIBIT 12.1

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(in thousands)

(unaudited)

|  | Years Ended |
|  | December 31, |
|  | 2014 |  |  | 2013 |  |  | 2012 |  |  | 2011 |  |  | 2010 |  |  | 2009 |
Earnings: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pre-tax net income (loss) (1) |  | $ | 3,652 |  |  | $ | 5,886 |  |  | $ | 4,377 |  |  | $ | 8,162 |  |  | $ | (12,109 | ) |  | $ | (1,732 | )
Less: | Equity in earnings of unconsolidated joint ventures |  |  | (6,970 | ) |  |  | (6,194 | ) |  |  | (6,476 | ) |  |  | (5,224 | ) |  |  | (4,952 | ) |  |  | (5,209 | )
Plus: | Distributions from unconsolidated joint ventures |  |  | 7,358 |  |  |  | 7,204 |  |  |  | 6,477 |  |  |  | 4,993 |  |  |  | 7,639 |  |  |  | 4,420 |
Fixed charges |  |  | 56,145 |  |  |  | 54,891 |  |  |  | 61,352 |  |  |  | 59,028 |  |  |  | 61,751 |  |  |  | 49,965 |
Total adjusted earnings |  | $ | 60,185 |  |  | $ | 61,787 |  |  | $ | 65,730 |  |  | $ | 66,959 |  |  | $ | 52,329 |  |  | $ | 47,444 |
Fixed charges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense (including debt issue costs amortized to interest expense) |  | $ | 42,727 |  |  | $ | 45,791 |  |  | $ | 53,783 |  |  | $ | 52,798 |  |  | $ | 48,398 |  |  | $ | 50,016 |
Adjustments to exclude fair value adjustments of cash flow hedges reclassified from OCI to interest expense |  |  | – |  |  |  | – |  |  |  | (918 | ) |  |  | (1,225 | ) |  |  | (917 | ) |  |  | (6,119 | )
Write-off of debt issue costs |  |  | 4,389 |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | 7,559 |  |  |  | – |
Portion of rent expense representative of the interest factor (2) |  |  | 9,029 |  |  |  | 9,100 |  |  |  | 8,487 |  |  |  | 7,455 |  |  |  | 6,711 |  |  |  | 6,068 |
Total fixed charges |  | $ | 56,145 |  |  | $ | 54,891 |  |  | $ | 61,352 |  |  | $ | 59,028 |  |  | $ | 61,751 |  |  | $ | 49,965 |
Ratio of earnings to fixed charges |  |  | – |  |  |  | 1.13 |  |  |  | 1.07 |  |  |  | 1.13 |  |  |  | – |  |  |  | – |
Additional earnings required to have a one- to-one ratio of earnings to fixed charges |  | $ | (4,040 | ) |  | $ | – |  |  | $ | – |  |  | $ | – |  |  | $ | 9,422 |  |  | $ | 2,521 |

(1) |  | Excludes net income attributable to noncontrolling interests

(2) |  | Represents 14% of operating lease costs, which approximates the portion that relates to the interest portion based on our estimated incremental borrowing rate