Exhibit 12
ORBCOMM Inc.
Computation of Ratio of Earnings to Fixed Charges and to Combined Fixed Charges and Preference Dividends
(Amounts in thousands, except the ratio)
| Fiscal Year Ended December 31, | ||||||||||||||||||||
| 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
| Earnings (A): |
||||||||||||||||||||
| Pre-tax income (loss) from continuing operations |
(61,604 | ) | (22,709 | ) | (11,774 | ) | (4,117 | ) | $ | 6,054 | ||||||||||
| Add: |
||||||||||||||||||||
| Fixed charges |
1,283 | 1,909 | 7,277 | 5,657 | 5,471 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| (60,321 | ) | (20,800 | ) | (4,497 | ) | 1,540 | 11,525 | |||||||||||||
| Less: |
||||||||||||||||||||
| Interest capitalized |
0 | 744 | 1,138 | 4,713 | 4,562 | |||||||||||||||
| Noncontrolling interest in pre-tax income (loss) of a subsidiary that has not incurred fixed charges |
89 | 285 | 252 | 159 | 160 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total earnings |
(60,410 | ) | (21,829 | ) | (5,887 | ) | (3,332 | ) | $ | 6,803 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Fixed Charges (B): |
||||||||||||||||||||
| Fixed charges included in earnings (G) |
149 | 149 | 5242 | 149 | $ | 58 | ||||||||||||||
| Interest portion of rent expense (F) |
1,134 | 1,016 | 897 | 795 | 851 | |||||||||||||||
| Capitalized interest |
0 | 744 | 1,138 | 4,713 | 4,562 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Total fixed charges |
1,283 | 1,909 | 7,277 | 5,657 | $ | 5,471 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Preference Security Dividend (C): |
12 | 14 | 36 | 37 | $ | 59 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
| Ratio of Earnings to Fixed Charges |
N/A | (D) | N/A | (D) | N/A | (D) | N/A | (D) | 1.2 | |||||||||||
| Ratio of Earnings to Combined Fixed Charges and Preference Security Dividends |
N/A | (E) | N/A | (E) | N/A | (E) | N/A | (E) | 1.2 | |||||||||||
| (A) | “Earnings” are defined as pre-tax income from continuing operations, adjusted for fixed charges, interest capitalized and income from non-controlling interest of subsidiaries that have not incurred fixed charges. |
| (B) | “Fixed charges” are defined as interest on borrowings (whether expensed or capitalized). |
| (C) | “Preference Security Dividend” is defined as the amount of pre-tax earnings that is required to pay the dividends on outstanding preferred stock. |
| (D) | The ratio coverage was less than 1:1 for fiscal years 2017, 2016, 2015 and 2014. The Company would have needed to generate additional pre-tax earnings of $61,693, $23,738, $13,164 and $8,989 to achieve coverage of 1:1 for fiscal years 2017, 2016, 2015 and 2014, respectively. |
| (E) | The ratio coverage was less than 1:1 for fiscal years 2017, 2016, 2015 and 2014. The Company would have needed to generate additional pre-tax earnings of $61,705, $23,752, $13,200 and $9,026 to achieve coverage of 1:1 for fiscal years 2017, 2016, 2015 and 2014, respectively. |
| (F) | One-third of net rent expense is the portion deemed representative of the interest factor. |
| (G) | Represents interest expense recorded. |