Exhibit 12
NCO Group, Inc.
Ratio of Earnings to Fixed Charges
(in thousands, except for ratios)
| Successor | Predecessor | Successor | Predecessor | |||||||||||||
| For the Three Months Ended June 30, |
For the Six Months Ended June 30, |
|||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||
| Earnings: |
||||||||||||||||
| Add: |
||||||||||||||||
| (Loss) income before income taxes and minority interest |
$ | (1 | ) | $ | 17,720 | $ | (204 | ) | $ | 35,618 | ||||||
| Fixed charges |
26,099 | 9,775 | 53,479 | 20,069 | ||||||||||||
| Amortization of capitalized interest |
3 | 3 | 5 | 5 | ||||||||||||
| 26,101 | 27,498 | 53,280 | 55,692 | |||||||||||||
| Subtract: |
||||||||||||||||
| Distributions to minority holders |
3,245 | 383 | 3,992 | 2,283 | ||||||||||||
| Earnings |
$ | 22,856 | $ | 27,115 | $ | 49,288 | $ | 53,409 | ||||||||
| Fixed Charges: |
||||||||||||||||
| Interest expense |
$ | 23,084 | $ | 6,793 | $ | 47,369 | $ | 13,804 | ||||||||
| Amortization of deferred financing charges not included in interest expense |
— | 33 | — | 230 | ||||||||||||
| Portion of rentals deemed to be interest |
3,015 | 2,949 | 6,110 | 6,035 | ||||||||||||
| $ | 26,099 | $ | 9,775 | $ | 53,479 | $ | 20,069 | |||||||||
| Ratio of earnings to fixed charges |
0.9 | x | 2.8 | x | 0.9 | x | 2.7 | x | ||||||||