Exhibit 12.1
Altra Holdings, Inc.
Computation of Ratio of Earnings to Fixed Charges
The ratio of earnings to fixed charges is determined using the following applicable factors:
Earningsis the amount of income before income taxes, discontinued operations, cumulative effect of change in accounting principle charges, and fixed charges, as defined below.
Fixed chargesis the sum of (i) interest expense and (ii) a portion of rental expense which we believe is representative of the interest component of rental expense.
The table also includes the computation of the ratio of earnings to fixed charges for our predecessor, Power Transmission Holding LLC, for the period from January 1, 2004 through November 30, 2004.
Periodfrom | ||||||||||||||||||||||||||||
Nine | Periodfrom | January 1, | ||||||||||||||||||||||||||
Months | December 1, | 2004 to | ||||||||||||||||||||||||||
Ended | 2004 to | November 30, | ||||||||||||||||||||||||||
September 26, | Fiscal Year Ended December 31, | December 31, | 2004 | |||||||||||||||||||||||||
($ in Thousands) (Unaudited) | 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | Predecessor | |||||||||||||||||||||
Earnings | ||||||||||||||||||||||||||||
Net Income (loss) | $ | 300 | $ | 6,494 | $ | 11,511 | $ | 10,363 | $ | 4,444 | $ | (5,762 | ) | $ | 6,895 | |||||||||||||
Adjustments to Net Income (loss): | ||||||||||||||||||||||||||||
(Gain) loss from discontinued operations | — | (224 | ) | 2,001 | — | — | — | — | ||||||||||||||||||||
Interest expense, net | 18,879 | 28,339 | 38,554 | 23,522 | 17,065 | 1,410 | 4,294 | |||||||||||||||||||||
Interest component of operating rental expense | 328 | 437 | 356 | 528 | 344 | 56 | 440 | |||||||||||||||||||||
Income taxes | (143 | ) | 16,731 | 8,208 | 6,352 | 3,917 | (221 | ) | 5,532 | |||||||||||||||||||
EARNINGS | $ | 19,364 | $ | 51,777 | $ | 60,630 | $ | 40,765 | $ | 25,770 | $ | (4,517 | ) | $ | 17,161 | |||||||||||||
Fixed Charges | ||||||||||||||||||||||||||||
Interest expense, net | $ | 18,879 | $ | 28,339 | $ | 38,554 | $ | 23,522 | $ | 17,065 | $ | 1,410 | $ | 4,294 | ||||||||||||||
Interest component of operating rental expense | 328 | 437 | 356 | 528 | 344 | 56 | 440 | |||||||||||||||||||||
TOTAL FIXED CHARGES | $ | 19,207 | $ | 28,776 | $ | 38,910 | $ | 24,050 | $ | 17,409 | $ | 1,466 | $ | 4,734 | ||||||||||||||
RATIO OF EARNINGS TO FIXED CHARGES | 1.01 | x | 1.80 | x | 1.56 | x | 1.70 | x | 1.48 | x | * | 3.63 | x | |||||||||||||||
* Insufficient earnings to cover fixed charges | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (5,983 | ) | $ | — |
For the periods indicated above, we had no outstanding shares of preferred stock with required dividend payments. Therefore, our ratios of earnings to combined fixed charges and preferred stock dividends for the periods indicated are identical to the ratios presented in the table above.