EXHIBIT 12.1
CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES
American Achievement Group Holding Corp. | ||||||||||
($ in thousands) | Fiscal Year Ended | |||||||||
August 30, 2008 | August 25, 2007 | August 26, 2006 | ||||||||
Income (loss) from continuing operations before income taxes | $ | (32,001) | $ | (19,572) | $ | 1,107 | ||||
Fixed charges: (1) Interest charges | 65,050 | 59,838 | 39,877 | |||||||
Interest portion of lease expense | 568 | 572 | 638 | |||||||
Total fixed charges | 65,618 | 60,410 | 40,515 | |||||||
Income from continuing operations before income taxes and fixed charges | $ | 33,617 | $ | 40,838 | $ | 41,622 | ||||
Ratio of earnings to fixed charges (2) | - | - | 1.03 | x | ||||||
AAC Group Holding Corp. | ||||||||||
Fiscal Year Ended | ||||||||||
August 30, 2008 | August 25, 2007 | August 26, 2006 | ||||||||
Income from continuing operations before income taxes | $ | 7,452 | $ | 6,181 | $ | 6,192 | ||||
Fixed charges: (1) Interest charges | 33,331 | 34,069 | 34,792 | |||||||
Interest portion of lease expense | 568 | 572 | 638 | |||||||
Total fixed charges | 33,899 | 34,641 | 35,430 | |||||||
Income from continuing operations before income taxes and fixed charges | $ | 41,351 | $ | 40,822 | $ | 41,622 | ||||
Ratio of earnings to fixed charges (2) | 1.22 | x | 1.18 | x | 1.17 | x | ||||
American Achievement Corporation | ||||||||||
Fiscal Year Ended | ||||||||||
August 30, 2008 | August 25, 2007 | August 26, 2006 | ||||||||
Income from continuing operations before income taxes | $ | 20,446 | $ | 17,639 | $ | 17,149 | ||||
Fixed charges: (1) Interest charges | 20,318 | 22,587 | 23,776 | |||||||
Interest portion of lease expense | 568 | 572 | 638 | |||||||
Total fixed charges | 20,886 | 23,159 | 24,414 | |||||||
Income from continuing operations before income taxes and fixed charges | $ | 41,332 | $ | 40,798 | $ | 41,563 | ||||
Ratio of earnings to fixed charges:(2) | 1.98 | x | 1.76 | x | 1.70 | 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) from continuing operations before income taxes and fixed charges. Fixed charges consist of interest expense, amortization of deferred debt issuance costs and the portion of rent/lease expense that includes an interest factor. In fiscal years 2008 and 2007, earnings before fixed charges for Parent Holdings were insufficient to cover fixed charges by approximately $32.0 million and $19.6 million, respectively. |