Exhibit 12.01
Portola Packaging, Inc.
Computation of Ratio of Earnings to Fixed Charges
(Unaudited)
(in thousands, except ratios)
For the years ended August 31, 2006, 2005, 2004, 2003 and 2002
| | | | | | | | | | | | | | | | | | | | |
| | Year ended August 31, |
| | 2006 | | 2005 | | 2004 | | 2003 | | 2002 |
Fixed Charges: | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Interest expense | | $ | 17,101 | | | $ | 16,439 | | | $ | 15,843 | | | $ | 12,544 | | | $ | 13,251 | |
Debt issuance costs | | | 1,614 | | | | 1,609 | | | | 2,545 | | | | 777 | | | | 756 | |
Rent expense | | | 4,058 | | | | 4,436 | | | | 4,469 | | | | 3,377 | | | | 3,443 | |
Total fixed costs | | | 22,773 | | | | 22,484 | | | | 22,857 | | | | 16,698 | | | | 17,450 | |
Add: Capitalized interest | | | — | | | | — | | | | 176 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Net fixed charges | | | 22,773 | | | | 22,484 | | | | 23,033 | | | | 16,698 | | | | 17,450 | |
| | | | | | | | | | | | | | | | | | | | |
Earnings: | | | | | | | | | | | | | | | | | | | | |
Net income (loss) | | | (28,766 | ) | | | (11,553 | ) | | | (20,791 | ) | | | (1,819 | ) | | | 4,436 | |
Income tax provision | | | 3,523 | | | | 3,729 | | | | 1,193 | | | | 2,071 | | | | 2,242 | |
Net fixed charges | | | 22,773 | | | | 22,484 | | | | 23,033 | | | | 16,698 | | | | 17,450 | |
| | | | | | | | | | | | | | | | | | | | |
Total pre-tax earnings less fixed charges | | | (2,470 | ) | | | 14,660 | | | | 3,435 | | | | 16,950 | | | | 23,928 | |
| | | | | | | | | | | | | | | | | | | | |
Ratio of pre-tax earnings to fixed charges (1) | | | (0.11 | ) | | | 0.65 | | | | 0.15 | | | | 1.02 | | | | 1.37 | |
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(1) | | The amounts of the deficiency in pre-tax earnings available to cover fixed charges from a ratio of 1.0x (in thousands) are $25,243, $7,824 and $19,598 for the years ended August 31, 2006, 2005 and 2004. |