EXHIBIT 12.1
CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES
American Achievement Group Holding Corp. | ||||||||||
($ in thousands) | Fiscal Year Ended | |||||||||
August 25, 2007 | August 26, 2006 | August 27, 2005 | ||||||||
Net income (loss) before income taxes | $ | (47,978 | ) | $ | 3,192 | $ | 3,550 | |||
Fixed charges: (1) Interest charges | 59,790 | 39,799 | 31,472 | |||||||
Interest portion of lease expense | 583 | 683 | 829 | |||||||
Total fixed charges | 60,373 | 40,482 | 32,301 | |||||||
Net income from operations before income taxes and fixed charges | $ | 12,395 | $ | 43,674 | $ | 35,851 | ||||
Ratio of earnings to fixed charges (2) | - | 1.08 | x | 1.11 | x | |||||
AAC Group Holding Corp. | ||||||||||
Fiscal Year Ended | ||||||||||
August 25, 2007 | August 26, 2006 | August 27, 2005 | ||||||||
Net income (loss) before income taxes | $ | (22,225 | ) | $ | 8,277 | $ | 3,550 | |||
Fixed charges: (1) Interest charges | 34,037 | 34,714 | 31,472 | |||||||
Interest portion of lease expense | 583 | 683 | 829 | |||||||
Total fixed charges | 34,620 | 35,397 | 32,301 | |||||||
Net income from operations before income taxes and fixed charges | $ | 12,395 | $ | 43,674 | $ | 35,851 | ||||
Ratio of earnings to fixed charges (2) | - | 1.23 | x | 1.11 | x | |||||
American Achievement Corporation | ||||||||||
Fiscal Year Ended | ||||||||||
August 25, 2007 | August 26, 2006 | August 27, 2005 | ||||||||
Net income (loss) before income taxes | $ | (10,767 | ) | $ | 19,234 | $ | 11,324 | |||
Fixed charges: (1) Interest charges | 22,579 | 23,757 | 23,698 | |||||||
Interest portion of lease expense | 583 | 683 | 829 | |||||||
Total fixed charges | 23,162 | 24,440 | 24,527 | |||||||
Net income from operations before income taxes and fixed charges | $ | 12,395 | $ | 43,674 | $ | 35,851 | ||||
Ratio of earnings to fixed charges:(2) | - | 1.79 | x | 1.46 | x | |||||
(1) | During the periods presented the Company had no preferred stock outstanding that required a cash payment. Therefore, the ratio of earnings to combined fixed charges and preferred dividends was the same as the ratio of earnings to fixed charges for each of the periods presented. | |
(2) | For purposes of computing this ratio, earnings consist of income (loss) before taxes on income and fixed charges. Fixed charges consist of interest expense, amortization of deferred debt issuance costs and the portion of rental expense that includes an interest factor. In fiscal year 2007 earnings before fixed charges were insufficient to cover fixed charges by approximately $48.0 million for Parent Holdings, $22.2 million for Intermediate Holdings and $10.8 million for AAC. |