EX-12 2 v323274_ex12.htm EXHIBIT12

Exhibit 12

Statement of Computation of Ratio of Earnings to Fixed Charges

|  | Nine Months Ended |
|  | September 30, |
|  | 2012 |  |  | 2011 |
|  | (000’s) |  |  | (000’s) |
Earnings: |  |  |  |  |  |  |  |
Loss from continuing operations attributable to MDC Partners Inc. |  | $ | (57,738 | ) |  | $ | (25,065 | )
Additions: |  |  |  |  |  |  |  |
Income tax expense |  |  | 6,014 |  |  |  | 904 |
Noncontrolling interest in income of consolidated subsidiaries |  |  | 4,428 |  |  |  | 6,537 |
Fixed charges, as shown below |  |  | 43,218 |  |  |  | 37,536 |
Distributions received from equity-method investees |  |  | 542 |  |  |  | 4,067 |
|  |  | 54,202 |  |  |  | 49,044 |
Subtractions: |  |  |  |  |  |  |  |
Equity in income of investees |  |  | 399 |  |  |  | 214 |
Noncontrolling interest in earnings of consolidated subsidiaries that have not incurred fixed charges |  |  | — |  |  |  | — |
|  |  | 399 |  |  |  | 214 |
Earnings as adjusted |  | $ | (3,935 | ) |  | $ | 23,765 |
Fixed charges: |  |  |  |  |  |  |  |
Interest on indebtedness, expensed or capitalized |  |  | 32,722 |  |  |  | 29,368 |
Amortization of debt discount and expense and premium on indebtedness, expensed or capitalized |  |  | 1,698 |  |  |  | 1,662 |
Interest within rent expense |  |  | 8,798 |  |  |  | 6,506 |
Total fixed charges |  | $ | 43,218 |  |  | $ | 37,536 |
Ratio of earnings to fixed charges |  |  | N/A |  |  |  | 0.63 |
Fixed charge deficiency |  | $ | 47,153 |  |  |  | 13,771 |