Exhibit 12.1
Intertape Polymer Group Inc.
Statement Re: Computation of Ratios
(dollars in millions)
| Year ended December 31, | Nine months ended September 30, | Pro Forma December 31, 2003 | ProForma Nine months ended September 30, | ||||||||||||||||||||||||
| 1999 | 2000 | 2001 | 2002 | 2003 | 2003 | 2004 | |||||||||||||||||||||
Earnings: | |||||||||||||||||||||||||||
Income from operations before taxes | 7.8 | 36.9 | (22.6 | ) | (67.2 | ) | 14.1 | 13.1 | (15.6 | ) | 23.7 | (7.5 | ) | ||||||||||||||
Plus fixed charges | 27.0 | 32.5 | 35.4 | 35.2 | 32.2 | 25.3 | 21.4 | 19.6 | 12.9 | ||||||||||||||||||
Plus amortization of capitalized interest | 0.1 | 0.1 | 0.2 | 0.2 | 0.3 | 0.2 | 0.2 | 0.3 | 0.2 | ||||||||||||||||||
Less capitalized interest | (1.1 | ) | (1.2 | ) | (0.9 | ) | (0.5 | ) | (0.7 | ) | (0.5 | ) | (0.5 | ) | (0.7 | ) | (0.5 | ) | |||||||||
Earnings | 33.8 | 68.3 | 12.1 | (32.3 | ) | 45.9 | 38.1 | 5.5 | 42.9 | 5.1 | |||||||||||||||||
Fixed Charges: | |||||||||||||||||||||||||||
Interest expense, including amortization of debt issue costs | 24.0 | 29.4 | 32.6 | 32.8 | 29.6 | 23.4 | 19.5 | 18.0 | 11.0 | ||||||||||||||||||
Capitalized interests | 1.1 | 1.2 | 0.9 | 0.5 | 0.7 | 0.5 | 0.5 | 0.7 | 0.5 | ||||||||||||||||||
Estimated interest factor of rental expense | 1.9 | 1.9 | 1.9 | 1.9 | 1.9 | 1.4 | 1.4 | 0.9 | 1.4 | ||||||||||||||||||
Fixed Charges | 27.0 | 32.5 | 35.4 | 35.2 | 32.2 | 25.3 | 21.4 | 19.6 | 12.9 | ||||||||||||||||||
Ratio of Earnings to Fixed Charges(1) | 1.3 | x | 2.1 | x | — | — | 1.4 | x | 1.5 | x | — | 2.2 | x | — | |||||||||||||
| (1) | For the purposes of calculating the ratio of earnings to fixed charges, “earnings” represents earnings before income taxes plus fixed charges. “Fixed charges” consist of interest expense, both expensed and capitalized, including amortization of debt issue expenses and that portion of rental expense considered to be a reasonable approximation of interest. On a pro forma basis after giving effect to the refinancing, our ratio of earnings to fixed charges would have been 2.2x for 2003. For the nine months ended September 30, 2004 and the proforma nine months ended September 2004, earnings were insufficient to cover fixed charges by approximately $15.9 million and $7.8 million, respectively. In 2001 and 2002, earnings were insufficient to cover fixed charges by approximately $23.3 million and $67.5 million, respectively. |
