EX-12 2 v358719_ex12.htm EXHIBIT 12
Exhibit 12
Statement of Computation of Ratio of Earnings to Fixed Charges

|  | Nine Months Ended |
|  | September 30, |
|  | 2013 |  | 2012 |
|  | (000’s) |  | (000’s) |
Earnings: |  |  |  |  |  |  |
Loss from continuing operations attributable to MDC Partners Inc. |  | $ | (43,501) |  | $ | (54,949) |
Additions: |  |  |  |  |  |  |
Income tax expense (benefit) |  |  | (8,189) |  |  | 6,014 |
Noncontrolling interest in income of consolidated subsidiaries |  |  | 4,410 |  |  | 5,159 |
Fixed charges, as shown below |  |  | 98,673 |  |  | 43,055 |
Distributions received from equity-method investees |  |  | 3,244 |  |  | 542 |
|  |  | 98,138 |  |  | 54,770 |
Subtractions: |  |  |  |  |  |  |
Equity in income (loss) of investees |  |  | 196 |  |  | 399 |
Noncontrolling interest in earnings of consolidated subsidiaries that have not incurred fixed charges |  |  | — |  |  | — |
|  |  | 196 |  |  | 399 |
Earnings as adjusted |  | $ | 54,441 |  | $ | (578) |
Fixed charges: |  |  |  |  |  |  |
Interest on indebtedness, expensed or capitalized |  |  | 81,935 |  |  | 32,722 |
Amortization of debt discount and expense and premium on indebtedness, expensed or capitalized |  |  | 7,045 |  |  | 1,698 |
Interest within rent expense |  |  | 9,693 |  |  | 8,635 |
Total fixed charges |  | $ | 98,673 |  | $ | 43,055 |
Ratio of earnings to fixed charges |  |  | N/A |  |  | N/A |
Fixed charge deficiency |  | $ | 44,232 |  |  | 43,633 |