Exhibit 12.1
Cambium Learning Group, Inc.
Cambium Learning Group, Inc.
Computation of Ratio of Earnings to Fixed Charges
Successor Period | ||||||||||||||||||||||||||||
from January 29, | ||||||||||||||||||||||||||||
2007 (Inception) | Predecessor Period | Predecessor Year | ||||||||||||||||||||||||||
Three Months | Year Ended | Year Ended | Year Ended | through | from January 1, | Ended | ||||||||||||||||||||||
Ended March 31, | December 31, | December 31, | December 31, | December 31, | 2007 through | December 31, | ||||||||||||||||||||||
(in thousands) | 2011 | 2010 | 2009 | 2008 | 2007 | April 11, 2007 | 2006 | |||||||||||||||||||||
Earnings | ||||||||||||||||||||||||||||
Consolidated net income (loss) | $ | (9,757 | ) | $ | (15,950 | ) | $ | (35,765 | ) | $ | (69,560 | ) | $ | (13,931 | ) | $ | (11,812 | ) | $ | 440 | ||||||||
Income tax expense (benefit) | 97 | (583 | ) | (7,704 | ) | (13,422 | ) | (7,838 | ) | (3,694 | ) | 3,403 | ||||||||||||||||
Consolidated income (loss) before income taxes | (9,660 | ) | (16,533 | ) | (43,469 | ) | (82,982 | ) | (21,769 | ) | (15,506 | ) | 3,843 | |||||||||||||||
Fixed charges | 4,676 | 17,816 | 19,593 | 18,644 | 13,370 | 804 | 1,555 | |||||||||||||||||||||
less: Capitalized interest | (80 | ) | (267 | ) | — | — | — | — | — | |||||||||||||||||||
add: Amortization of capitalized interest | 16 | 28 | — | — | — | — | — | |||||||||||||||||||||
Earnings available for fixed charges | (5,048 | ) | 1,044 | (23,876 | ) | (64,338 | ) | (8,399 | ) | (14,702 | ) | 5,398 | ||||||||||||||||
Fixed charges | ||||||||||||||||||||||||||||
Interest and issuance expense on debt and capital leases | 4,536 | 17,311 | 19,487 | 18,520 | 13,276 | 766 | 1,364 | |||||||||||||||||||||
Capitalized interest | 80 | 267 | — | — | — | — | — | |||||||||||||||||||||
Portion of rentals representative of the interest factor | 60 | 238 | 106 | 124 | 94 | 38 | 191 | |||||||||||||||||||||
Total fixed charges | 4,676 | 17,816 | 19,593 | 18,644 | 13,370 | 804 | 1,555 | |||||||||||||||||||||
Ratio of earning to fixed charges (a) | (1.08 | ) | 0.06 | (1.22 | ) | (3.45 | ) | (0.63 | ) | (18.30 | ) | 3.47 |
(a) | Our consolidated ratio of earnings to fixed charges were less than one-to-one coverage for the three months ended March 31, 2011, for the three months ended March 31, 2011, for the years ended December 31, 2010, 2009, and 2008 and the periods ended December 31, 2007 and April 11, 2007. Earnings available for fixed charges for these periods were inadequate to cover total fixed charges. The deficient amounts, in thousands, for the ratio were $9,724, $16,772, $43,469, $82,982, $21,769, and $15,506 for the three months ended March 31, 2011, for the years ended December 31, 2010, 2009, and 2008 and the periods ended December 31, 2007 and April 11, 2007, respectively. |