EX-12 2 v342926_ex12.htm EXHIBIT 12

Exhibit 12

Statement of Computation of Ratio of Earnings to Fixed Charges

|  | Three Months Ended |
|  | March 31, |
|  | 2013 |  |  | 2012 |
|  | (000’s) |  |  | (000’s) |
Earnings: |  |  |  |  |  |  |  |
Loss from continuing operations attributable to MDC Partners Inc. |  | $ | (41,601 | ) |  | $ | (25,189 | )
Additions: |  |  |  |  |  |  |  |
Income tax expense (benefit) |  |  | (14,250 | ) |  |  | 1,263 |
Noncontrolling interest in income of consolidated subsidiaries |  |  | 984 |  |  |  | 1,497 |
Fixed charges, as shown below |  |  | 71,194 |  |  |  | 13,571 |
Distributions received from equity-method investees |  |  | 3,096 |  |  |  | — |
|  |  | 61,024 |  |  |  | 16,331 |
Subtractions: |  |  |  |  |  |  |  |
Equity in income (loss) of investees |  |  | 41 |  |  |  | 272 |
Noncontrolling interest in earnings of consolidated subsidiaries that have not incurred fixed charges |  |  | — |  |  |  | — |
|  |  | 41 |  |  |  | 272 |
Earnings as adjusted |  | $ | 19,382 |  |  | $ | (9,130 | )
Fixed charges: |  |  |  |  |  |  |  |
Interest on indebtedness, expensed or capitalized |  |  | 62,363 |  |  |  | 10,437 |
Amortization of debt discount and expense and premium on indebtedness, expensed or capitalized |  |  | 5,653 |  |  |  | 559 |
Interest within rent expense |  |  | 3,178 |  |  |  | 2,575 |
Total fixed charges |  | $ | 71,194 |  |  | $ | 13,571 |
Ratio of earnings to fixed charges |  |  | N/A |  |  |  | N/A |
Fixed charge deficiency |  | $ | 51,812 |  |  |  | 22,701 |