EX-12 3 v350901_ex12.htm EXHIBIT 12

Exhibit 12

Statement of Computation of Ratio of Earnings to Fixed Charges

|  | Six Months Ended |
|  | June 30, |
|  | 2013 |  |  | 2012 |
|  | (000’s) |  |  | (000’s) |
Earnings: |  |  |  |  |  |  |  |
Loss from continuing operations attributable to MDC Partners Inc. |  | $ | (31,506 | ) |  | $ | (42,810 | )
Additions: |  |  |  |  |  |  |  |
Income tax expense (benefit) |  |  | (12,523 | ) |  |  | 3,807 |
Noncontrolling interest in income of consolidated subsidiaries |  |  | 2,500 |  |  |  | 3,307 |
Fixed charges, as shown below |  |  | 84,842 |  |  |  | 28,505 |
Distributions received from equity-method investees |  |  | 3,096 |  |  |  | 166 |
|  |  | 77,915 |  |  |  | 35,785 |
Subtractions: |  |  |  |  |  |  |  |
Equity in income (loss) of investees |  |  | 123 |  |  |  | 306 |
Noncontrolling interest in earnings of consolidated subsidiaries that have not incurred fixed charges |  |  | — |  |  |  | — |
|  |  | 123 |  |  |  | 306 |
Earnings as adjusted |  | $ | 46,286 |  |  | $ | (7,331 | )
Fixed charges: |  |  |  |  |  |  |  |
Interest on indebtedness, expensed or capitalized |  |  | 72,088 |  |  |  | 21,697 |
Amortization of debt discount and expense and premium on indebtedness, expensed or capitalized |  |  | 6,303 |  |  |  | 1,129 |
Interest within rent expense |  |  | 6,451 |  |  |  | 5,679 |
Total fixed charges |  | $ | 84,842 |  |  | $ | 28,505 |
Ratio of earnings to fixed charges |  |  | N/A |  |  |  | N/A |
Fixed charge deficiency |  | $ | 38,556 |  |  |  | 35,836 |