Exhibit 12.1
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
The ratio of earnings to fixed charges, as well as any deficiency of earnings are determined using the following applicable factors:
Earnings available for fixed charges are calculated by determining the sum of income (loss) before income taxes and fixed charges.
Fixed charges are calculated as the sum of: (a) interest expense; (b) amortization of debt discount; (c) amortization of debt issuance costs; and (d) that portion of rental expense that is representative of the interest factor.
| Fiscal Year Ended | Six Months Ended | |||||||||||||||||||||||||||
| (in thousands) | December 28, 2013 | December 27, 2014 | December 26, 2015 | December 31, 2016 | December 30, 2017 | July 1, 2017 | June 30, 2018 | |||||||||||||||||||||
Fixed charges: | ||||||||||||||||||||||||||||
Interest expense | $ | 1,539 | $ | 2,626 | $ | 2,625 | $ | 2,625 | $ | 2,625 | $ | 1,313 | $ | 1,094 | ||||||||||||||
Amortization of debt discount | 4,164 | 7,730 | 8,546 | 9,447 | 10,444 | 5,091 | 4,671 | |||||||||||||||||||||
Amortization of debt issuance costs | 358 | 665 | 735 | 813 | 898 | 437 | 402 | |||||||||||||||||||||
Portion of rental expense that represents interest factor | 2,197 | 2,174 | 2,405 | 3,014 | 3,123 | 1,626 | 1,321 | |||||||||||||||||||||
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Total fixed charges | $ | 8,258 | $ | 13,195 | $ | 14,311 | $ | 15,899 | $ | 17,090 | $ | 8,467 | $ | 7,488 | ||||||||||||||
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Earnings available for fixed charges: | ||||||||||||||||||||||||||||
Income (loss) before income taxes | $ | (30,465 | ) | $ | 16,412 | $ | 52,031 | $ | (29,181 | ) | $ | (195,936 | ) | $ | (83,960 | ) | $ | (49,020 | ) | |||||||||
Add: fixed charges | 8,258 | 13,195 | 14,311 | 15,899 | 17,090 | 8,467 | 7,488 | |||||||||||||||||||||
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Total earnings available for fixed charges | $ | (22,207 | ) | $ | 29,607 | $ | 66,342 | $ | (13,282 | ) | $ | (178,846 | ) | $ | (75,493 | ) | $ | (41,532 | ) | |||||||||
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Ratio of earnings to fixed charges | * | 2.2 | 4.6 | * | * | * | * | |||||||||||||||||||||
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* Earnings were insufficient to cover our fixed charges by approximately $30.5 million, $29.2 million, and $195.9 million for the years ended December 28, 2013, December 31, 2016 and December 30, 2017, respectively, and by approximately $84.0 million and $49.0 million for the six months ended July 1, 2017 and June 30, 2018, respectively.
