Exhibit 12.1
RATIO OF EARNINGS TO FIXED CHARGES
The following table shows the ratio of earnings to fixed charges of the Company for the periods indicated. For purposes of computing the following ratio of earnings to fixed charges, earnings represents income (loss) from continuing operations before income taxes, discontinued operations and fixed charges. Fixed charges represent interest expense, net of capitalized interest, and such portion of rental expense that represents an appropriate interest factor.
| Three Months Ended | ||||||||||||||||||||||||
| Year Ended December 31, | March 31, | |||||||||||||||||||||||
| 2010 (a) | 2009 (b) | 2008 (c) | 2007 (d) | 2006 | 2011 (e) | |||||||||||||||||||
| (Dollars in thousands, except ratio amounts) | ||||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
| Net (loss) income attributable to American Reprographics Company before income taxes | $ | (41,688 | ) | $ | (11,867 | ) | $ | 57,954 | $ | 111,340 | $ | 83,376 | $ | (7,292 | ) | |||||||||
| Fixed charges | 31,440 | 30,769 | 29,740 | 32,987 | 26,912 | 9,047 | ||||||||||||||||||
| Earnings, as defined | $ | (10,248 | ) | $ | 18,902 | $ | 87,694 | $ | 144,328 | $ | 110,289 | $ | 1,755 | |||||||||||
Fixed Charges: | ||||||||||||||||||||||||
| Interest expense, net | $ | 24,091 | $ | 25,781 | $ | 25,890 | $ | 24,373 | $ | 23,192 | $ | 8,167 | ||||||||||||
| Amortized discounts | 44 | — | — | — | — | 132 | ||||||||||||||||||
| Capitalized expenses related to debt | 4,913 | 2,092 | 726 | 5,687 | 544 | 164 | ||||||||||||||||||
| Interest portion of rent expense | 2,392 | 2,896 | 3,124 | 2,927 | 3,176 | 584 | ||||||||||||||||||
| Fixed Charges, as defined | $ | 31,440 | $ | 30,769 | $ | 29,740 | $ | 32,987 | $ | 26,912 | $ | 9,047 | ||||||||||||
Ratio of Earnings to Fixed Charges | — | — | 2.9 | 4.4 | 4.1 | — | ||||||||||||||||||
| (a) | The ratio calculation indicates a less than one-to-one coverage for the year ended December 31, 2010. Earnings available for fixed charges for the year ended December 31, 2010, were inadequate to cover total fixed charges. The deficient amount for the ratio was $41,688. Net loss attributable to American Reprographics Company, before income taxes for the year ended December 31, 2010 includes $38,263 of non-cash goodwill impairment charges and $2,509 of non-cash loss on early extinguishment of debt. | |
| (b) | The ratio calculation indicates a less than one-to-one coverage for the year ended December 31, 2009. Earnings available for fixed charges for the year ended December 31, 2009, were inadequate to cover total fixed charges. The deficient amount for the ratio was $11,867. Net loss income attributable to American Reprographics Company, before income taxes for the year ended December 31, 2009 includes $38,163 of non-cash goodwill and long-lived asset impairment charges. | |
| (c) | Net income attributable to American Reprographics Company, before income taxes for the year ended December 31, 2008 includes $35,154 of non-cash goodwill impairment charges. | |
| (d) | Net income attributable to American Reprographics Company, before income taxes for the year ended December 31, 2007 includes $1,327 non-cash loss on early extinguishment of debt. | |
| (e) | The ratio calculation indicates a less than one-to-one coverage for the quarter ended March 31, 2011. Earnings available for fixed charges for the quarter ended March 31, 2011, were inadequate to cover total fixed charges. The deficient amount for the ratio was $7,292. |