EXHIBIT 12.1
VALASSIS COMMUNICATIONS, INC. AND SUBSIDIARIES
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Unaudited)
| Three Months Ended March 31, | Year Ended December 31, | |||||||||||||||||||||||||||
(in thousands of U.S. dollars) | 2011 | 2010 | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||||
Fixed charges: | ||||||||||||||||||||||||||||
Interest expense | $ | 9,775 | $ | 20,156 | $ | 64,904 | $ | 87,041 | $ | 98,903 | $ | 93,779 | $ | 19,862 | (a) | |||||||||||||
Portion of rent expense representative of interest | 2,260 | 2,294 | 9,174 | 9,513 | 10,419 | 8,967 | 2,900 | |||||||||||||||||||||
Total fixed charges | $ | 12,035 | $ | 22,450 | $ | 74,078 | $ | 96,554 | $ | 109,322 | $ | 102,746 | $ | 22,762 | ||||||||||||||
Earnings (Loss): | ||||||||||||||||||||||||||||
Earnings (loss) before income taxes | $ | 34,707 | $ | 524,364 | $ | 632,655 | $ | 110,943 | $ | (215,837 | ) | $ | 79,996 | $ | 74,674 | |||||||||||||
Fixed charges per above | 12,035 | 22,450 | 74,078 | 96,554 | 109,322 | 102,746 | 22,762 | |||||||||||||||||||||
Total earnings (loss) | $ | 46,742 | $ | 546,814 | $ | 706,733 | $ | 207,497 | $ | (106,515 | ) | $ | 182,742 | $ | 97,436 | |||||||||||||
Ratio of earnings to fixed charges | 3.88 | 24.36 | 9.54 | 2.15 | (b) | 1.78 | 4.28 | |||||||||||||||||||||
| (a) | Excludes $13,751 of interest expense for premiums and losses on swap and swaption contracts. These contracts are unrelated to our indebtedness. |
| (b) | Earnings for the year ended December 31, 2008 were inadequate to cover fixed charges by $215.8 million. |