Exhibit 12.1
CALCULATION OF RATIOS OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
PAETEC Holding’s ratios of earnings to fixed charges were as follows:
| Year Ended December 31, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2002 | 2003 | 2004 | 2005 | 2006 | 2006 | 2007 | |||||||||||||||||
| (in thousands) | |||||||||||||||||||||||
| Earnings: |
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| Income (loss) before income taxes and cumulative effect of a change in accounting principle |
$ | (9,462 | ) | $ | 35,160 | $ | 40,477 | $ | 28,598 | $ | 16,233 | $ | 12,146 | $ | (6,846 | ) | |||||||
| Plus: Fixed Charges (see below) |
15,265 | 11,289 | 11,703 | 11,376 | 28,207 | 17,814 | 52,155 | ||||||||||||||||
| Total Earnings |
$ | 5,803 | $ | 46,449 | $ | 52,180 | $ | 39,974 | $ | 44,440 | $ | 29,960 | $ | 45,309 | |||||||||
| Fixed Charges: |
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| Interest expense, including amortization of debt issuance costs |
14,745 | 10,737 | 10,911 | 10,472 | 27,319 | 17,144 | 51,001 | ||||||||||||||||
| Portion of rental expense deemed to represent interest |
520 | 552 | 792 | 904 | 888 | 670 | 1,154 | ||||||||||||||||
| Total Fixed Charges |
15,265 | 11,289 | 11,703 | 11,376 | 28,207 | 17,814 | 52,155 | ||||||||||||||||
| Preferred dividends and accretion to redemption value |
— | — | — | — | — | — | — | ||||||||||||||||
| Total Fixed Charges and Preferred Dividends and Accretion |
$ | 15,265 | $ | 11,289 | $ | 11,703 | $ | 11,376 | $ | 28,207 | $ | 17,814 | $ | 52,155 | |||||||||
| Ratio of earnings to fixed charges and preferred stock dividends |
0.38 | 4.11 | 4.46 | 3.51 | 1.58 | 1.68 | 0.87 | ||||||||||||||||
| Coverage deficiency |
$ | (9,462 | ) | — | — | — | — | — | $ | (6,846 | ) | ||||||||||||