Exhibit 12.1
CARAUSTAR INDUSTRIES, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(in thousands)
| 1999 | 2000 | 2001 | 2002 | 2003 | Nine Months Ended September 30, 2004 | |||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
Income (Loss) from continuing operations before income taxes, minority interest, reversal of loss on discontinued operations, and cumulative effect of accounting changes | $ | 64,641 | $ | 13,829 | $ | (22,295 | ) | $ | (27,778 | ) | $ | (42,330 | ) | $ | (7,469 | ) | ||||||||
Equity in income of less-than-50-percent-owned entities | — | — | — | — | — | — | ||||||||||||||||||
Fixed charges | 30,528 | 41,776 | 49,997 | 47,245 | 54,288 | 39,870 | ||||||||||||||||||
Less capitalized interest expense | (626 | ) | (852 | ) | — | — | — | — | ||||||||||||||||
Earnings | $ | 94,543 | $ | 54,753 | $ | 27,702 | $ | 19,467 | $ | 11,958 | $ | 32,401 | ||||||||||||
Fixed charges: | ||||||||||||||||||||||||
Interest expense | $ | 25,735 | $ | 35,730 | $ | 43,492 | $ | 39,938 | $ | 47,227 | $ | 35,046 | ||||||||||||
Amortization of debt issuance costs | 142 | 737 | 1,566 | 1,534 | (214 | ) | (632 | ) | ||||||||||||||||
Estimate of the interest cost within rental expense | 4,025 | 4,457 | 4,939 | 5,773 | 7,275 | 5,456 | ||||||||||||||||||
Capitalized interest expense | 626 | 852 | — | — | — | — | ||||||||||||||||||
Fixed charges | $ | 30,528 | $ | 41,776 | $ | 49,997 | $ | 47,245 | $ | 54,288 | $ | 39,870 | ||||||||||||
Ratio of earnings to fixed charges | 3.10 | 1.31 | (¹ | ) | (¹ | ) | (¹ | ) | (¹ | ) | ||||||||||||||
| (¹) | For the nine months ended September 30, 2004 and fiscal years 2003, 2002 and 2001, earnings were inadequate to fixed charges. The deficiency was $7.47 million for the nine months ended September 30, 2004, and $42.3 million, $27.8 million and $22.3 million for 2003, 2002 and 2001, respectively. |