Exhibit 12.1
RATIO OF EARNINGS TO FIXED CHARGES
Computation of Ratio of Earnings to Fixed Charges
(in thousands, except for ratios)
Predecessor | Successor | |||||||||||||||
Period From February 1, 2006 to March 9, 2006 | Period From March 10, 2006 to January 31, 2007 | Fiscal Year Ended January 31, 2008 | Fiscal Year Ended January 31, 2009 | |||||||||||||
Loss before income taxes | $ | (33,051 | ) | $ | (42,155 | ) | $ | (48,046 | ) | $ | (350,930 | ) | ||||
Interest expense (1) | 355 | 45,062 | 47,535 | 32,515 | ||||||||||||
Amortization and write-off of debt issuance costs (2) | 1,931 | 1,632 | 1,111 | 2,070 | ||||||||||||
Goodwill impairment | — | — | — | 326,677 | ||||||||||||
Portion of rentals deemed to be interest (3) | 161 | 1,700 | 2,118 | 2,209 | ||||||||||||
(Loss) income available for fixed charges | $ | (30,604 | ) | $ | 6,239 | $ | 2,718 | $ | 12,541 | |||||||
Fixed charges: | ||||||||||||||||
Interest expense (1) | $ | 355 | $ | 45,062 | $ | 47,535 | $ | 32,515 | ||||||||
Amortization and write-off of debt issuance costs (2) | 1,931 | 1,632 | 1,111 | 2,070 | ||||||||||||
Portion of rentals deemed to be interest (3) | 161 | 1,700 | 2,118 | 2,209 | ||||||||||||
Total fixed charges | $ | 2,447 | $ | 48,394 | $ | 50,764 | $ | 36,794 | ||||||||
Ratio of earnings to fixed charges | - x | 0.1 x | 0.1 x | 0.3 x |
For purposes of computing the ratio of earnings to fixed charges, earnings consist of loss before income taxes and excluding goodwill impairment plus fixed charges. Fixed charges consist of (i) interest expense including gain on early extinguishment of debt, (ii) amortization and write-off of debt issuance costs, and (iii) that portion of rental expense we estimate to be representative of interest. Earnings would not have been sufficient to cover fixed charges by $33.1 million, $42.2 million, $48.0 million and $24.3 million, for the predecessor period from February 1, 2006 through March 9, 2006, the successor period from March 10, 2006 through January 31, 2007, and the successor fiscal years ended January 31, 2008 and 2009, respectively.