Exhibit 12.1
Graphic Packaging International Corporation
Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Dividends
(in thousands)
Year Ended December 31, | ||||||||||||||||||||
2001 | 2000 | 1999 | 1998 | 1997 | ||||||||||||||||
Earnings: | ||||||||||||||||||||
| Pretax income (loss) from continuing operations | $ | 10,693 | $ | (11,676 | ) | $ | 30,355 | $ | 10,204 | $ | (2,065 | ) | ||||||||
| Share of loss from equity investee | 804 | 473 | 267 | — | — | |||||||||||||||
| Fixed charges (from below) | 80,654 | 97,161 | 56,642 | 27,078 | 10,927 | |||||||||||||||
| Depreciation of capitalized interest | 936 | 1,824 | 95 | 45 | 55 | |||||||||||||||
| Capitalized interest | (1,828 | ) | (1,089 | ) | (1,974 | ) | (330 | ) | (460 | ) | ||||||||||
| Total earnings | $ | 91,259 | $ | 86,693 | $ | 85,385 | $ | 36,997 | $ | 8,457 | ||||||||||
Fixed Charges: | ||||||||||||||||||||
| Interest expensed | $ | 52,811 | $ | 82,071 | $ | 50,240 | $ | 25,579 | $ | 8,686 | ||||||||||
| Interest capitalized | 1,828 | 1,089 | 1,974 | 330 | 460 | |||||||||||||||
| Amortization of debt issuance costs | 7,795 | 8,865 | 2,448 | — | — | |||||||||||||||
| Interest factor in rent expense (1) | 1,606 | 1,330 | 1,980 | 1,170 | 1,801 | |||||||||||||||
| Funds needed to pay preferred stock dividends | 16,614 | 3,806 | — | — | — | |||||||||||||||
| Total fixed charges and preferred dividends | $ | 80,654 | $ | 97,161 | $ | 56,642 | $ | 27,078 | $ | 10,927 | ||||||||||
| Ratio of earnings to combined fixed charges and preferred dividends | 1.1 | 0.9 | 1.5 | 1.4 | 0.8 | |||||||||||||||
| Deficiency | $ | — | $ | (10,468 | ) | $ | — | $ | — | $ | (2,470 | ) | ||||||||
| (1) | 33% of rental expense (considered to be representative of the interest factor). |