Exhibit 12.1
KRATON PERFORMANCE POLYMERS, INC.
Ratio of Earnings to Fixed Charges
(In thousands)
| Six months ended | Years ended December 31, | |||||||||||||||||||||||
| June 30, 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||||
Fixed Charges: | ||||||||||||||||||||||||
+ Interest expensed | 10,821 | 25,815 | 27,550 | 24,127 | 23,422 | 22,509 | ||||||||||||||||||
+ Interest capitalized | 2,407 | 3,198 | 4,180 | 2,648 | 2,259 | 520 | ||||||||||||||||||
+ Amortization of debt issuance costs | 1,107 | 2,223 | 7,389 | 2,986 | 6,722 | 2,071 | ||||||||||||||||||
+ Amortization of debt premium | (86 | ) | (164 | ) | (153 | ) | (108 | ) | — | — | ||||||||||||||
+ Estimate of interest within rental expense | 616 | 1,231 | 3,747 | 4,259 | 2,846 | 2,205 | ||||||||||||||||||
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Total fixed charges | 14,865 | 32,303 | 42,713 | 33,912 | 35,249 | 27,305 | ||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
+ Pre-tax income (loss) | (14,675 | ) | 6,328 | (4,862 | ) | 3,115 | 91,509 | 111,858 | ||||||||||||||||
- Income from equity investees | (178 | ) | (407 | ) | (530 | ) | (530 | ) | (529 | ) | (487 | ) | ||||||||||||
+ Fixed charges | 14,865 | 32,303 | 42,713 | 33,912 | 35,249 | 27,305 | ||||||||||||||||||
+ Amortization of capitalized interest | 241 | 320 | 418 | 265 | 226 | — | ||||||||||||||||||
+ Distributed income of equity investees | 363 | 487 | 422 | 400 | 515 | 403 | ||||||||||||||||||
- Interest capitalized | (2,407 | ) | (3,198 | ) | (4,180 | ) | (2,648 | ) | (2,259 | ) | (520 | ) | ||||||||||||
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Total Earnings | (1,791 | ) | 35,833 | 33,981 | 34,514 | 124,711 | 138,559 | |||||||||||||||||
Deficiency (Surplus) | 16,656 | (3,530 | ) | 8,732 | (602 | ) | (89,462 | ) | (111,254 | ) | ||||||||||||||
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Ratio | (0.12 | ) | 1.11 | 0.80 | 1.02 | 3.54 | 5.07 | |||||||||||||||||
Ratio of Earnings to Fixed Charges | (0.12):1:00 | 1.11:1.00 | 0.80:1.00 | 1.02:1.00 | 3.54:1.00 | 5.07:1.00 | ||||||||||||||||||
Our earnings were insufficient to cover our fixed charges by approximately $16.7 million and $8.7 million for the six months ended June 30, 2015 and the year ended December 31, 2013, respectively.
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