Exhibit 12.1
ASSOCIATED MATERIALS, LLC
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(in thousands, except for ratios)
Nine Months Ended October 3, 2009 | Fiscal Years Ended | ||||||||||||||||||
January 3, 2009 | December 29, 2007 | December 30, 2006 | December 31, 2005 | January 1, 2005 | |||||||||||||||
Earnings: | |||||||||||||||||||
Income (loss) before income taxes | $ | 31,199 | $ | 34,925 | $ | 68,500 | $ | 63,393 | $ | 32,172 | $ | (12,168 | ) | ||||||
Plus: Fixed charges | 25,405 | 35,467 | 38,743 | 42,733 | 40,292 | 34,234 | |||||||||||||
Total earnings | $ | 56,604 | $ | 70,392 | $ | 107,243 | $ | 106,126 | $ | 72,464 | $ | 22,066 | |||||||
Fixed charges: | |||||||||||||||||||
Interest expense | $ | 16,581 | $ | 24,307 | $ | 27,943 | $ | 32,413 | $ | 31,922 | $ | 27,784 | |||||||
Plus: Imputed interest on operating leases (a) | 8,824 | 11,160 | 10,800 | 10,320 | 8,370 | 6,450 | |||||||||||||
Total fixed charges | $ | 25,405 | $ | 35,467 | $ | 38,743 | $ | 42,733 | $ | 40,292 | $ | 34,234 | |||||||
Ratio of earnings to fixed charges | 2.23 | 1.98 | 2.77 | 2.48 | 1.80 | (b) | |||||||||||||
Lease rental expense | $ | 29,414 | $ | 37,200 | $ | 36,000 | $ | 34,400 | $ | 27,900 | $ | 21,500 |
(a) | Imputed interest on operating leases is estimated to be 30% of the fiscal year lease rental expense. |
(b) | For the year ended January 1, 2005, earnings were inadequate to cover fixed charges, and the ratio of earnings to fixed charges therefore has not been presented for that period. The coverage deficiency necessary for the ratio of earnings to fixed charges to equal 1.00x (one-to-one coverage) was $12.2 million for the year ended January 1, 2005. |