EX-12.2 3 sfi-12312012xex122.htm EXHIBIT 12.2
Exhibit 12.2
Computation of Ratio of Adjusted EBITDA to Interest Expense and Preferred Dividends
($ in thousands, except ratios)

| For the Years Ended December 31,
| 2012 |  | 2011 |  | 2010 |  | 2009 |  | 2008
Adjusted EBITDA (1): |  |  |  |  |  |  |  |  |
Net income (loss) | $ | (241,430 | ) |  | $ | (25,693 | ) |  | $ | 80,206 |  |  | $ | (769,847 | ) |  | $ | (181,767 | )
Add: Interest expense (2) | 356,161 |  |  | 345,914 |  |  | 346,500 |  |  | 481,116 |  |  | 666,706 |
Add: Income tax expense (benefit) | 8,445 |  |  | (4,719 | ) |  | 7,023 |  |  | 4,141 |  |  | 10,375 |
Add: Depreciation and amortization (3) | 70,786 |  |  | 63,928 |  |  | 70,786 |  |  | 98,238 |  |  | 102,745 |
Add: Provision for loan losses | 81,740 |  |  | 46,412 |  |  | 331,487 |  |  | 1,255,357 |  |  | 1,029,322 |
Add: Impairment of assets (4) | 36,354 |  |  | 22,386 |  |  | 22,381 |  |  | 141,018 |  |  | 334,830 |
Add: Stock-based compensation expense | 15,293 |  |  | 29,702 |  |  | 19,355 |  |  | 23,593 |  |  | 23,542 |
Less: (Gain) loss on early extinguishment of debt, net (5) | 22,405 |  |  | (101,466 | ) |  | (110,075 | ) |  | (547,349 | ) |  | (393,131 | )
Total Adjusted EBITDA (1)(6) | $ | 349,754 |  |  | $ | 376,464 |  |  | $ | 767,663 |  |  | $ | 686,267 |  |  | $ | 1,592,622 |
Interest expense and preferred dividends: |  |  |  |  |  |  |  |  |
Interest expense (2) | $ | 356,161 |  |  | $ | 345,914 |  |  | $ | 346,500 |  |  | $ | 481,116 |  |  | $ | 666,706 |
Preferred dividends | 42,320 |  |  | 42,320 |  |  | 42,320 |  |  | 42,320 |  |  | 42,320 |
Total interest expense and preferred dividends | $ | 398,481 |  |  | $ | 388,234 |  |  | $ | 388,820 |  |  | $ | 523,436 |  |  | $ | 709,026 |
Adjusted EBITDA/Interest expense and preferred dividends | 0.9x |  |  | 1.0x |  |  | 2.0x |  |  | 1.3x |  |  | 2.2x |

Explanatory Notes:
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(1) | Adjusted EBITDA should be examined in conjunction with net income (loss) as shown in the Company's Consolidated Statements of Operations. Adjusted EBITDA should not be considered as an alternative to net income (loss) (determined in accordance with GAAP), as an indicator of the Company's performance, or to cash flows from operating activities (determined in accordance with GAAP) as a measure of the Company's liquidity, nor is Adjusted EBITDA an indicative of funds available to fund the Company's cash needs or available for distribution to shareholders. Rather, Adjusted EBITDA is an additional measure for the Company to use to analyze how the business is performing. It should be noted that the Company's manner of calculating Adjusted EBITDA may differ from the calculations of similarly-titled measures by other companies. See computation of Adjusted EBITDA on page 36.

(2) | For the years ended December 31, 2012, 2011, 2010, 2009 and 2008, interest expense includes $1,064, $3,728, $32,734, $69,227 and $51,173, respectively, of interest expense reclassified to discontinued operations.

(3) | For the years ended December 31, 2012, 2011, 2010, 2009 and 2008, depreciation and amortization includes $1,436, $5,266, $13,566, $41,547, and $45,973, respectively, of depreciation and amortization reclassified to discontinued operations.

(4) | For the years ended December 31, 2012, 2011, 2010, 2009, 2008 impairment of assets includes $22,576, $9,147, $9,572, $26,901 and $31,219 of impairment of assets reclassified to discontinued operations.

(5) | For the years ended December 31, 2012 and 2010, (Gain) loss on early extinguishment of debt excludes the portion of losses paid in cash of $15,411 and $1,152, respectively.

(6) | Prior year presentation has been restated to conform to current period presentation.