Exhibit 12.1
POLYMER GROUP, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Unaudited)
(Dollars in thousands, except ratio data)
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Unaudited)
(Dollars in thousands, except ratio data)
Predecessor | Successor | |||||||||||||||||||||||||||
Fiscal year ended(1) | One Month ended | Eight Months Ended | ||||||||||||||||||||||||||
December 30, 2006 | December 29, 2007 | January 3, 2009 | January 2, 2010 | January 1, 2011 | January 28, 2011 | October 1, 2011 | ||||||||||||||||||||||
Income (loss) from continuing operations before provision (benefit) for income taxes | $ | (26,493 | ) | $ | (16,206 | ) | $ | (2,543 | ) | $ | 17,601 | $ | 16,329 | $ | (17,753 | ) | $ | (51,380 | ) | |||||||||
Add: | ||||||||||||||||||||||||||||
Interest expense | 29,719 | 33,033 | 33,405 | 27,504 | 31,876 | 1,978 | 33,824 | |||||||||||||||||||||
Amortizations of capitalized interest | 314 | 629 | 902 | 930 | 953 | 68 | 614 | |||||||||||||||||||||
Portion of rental expense under operating leases deemed to be the equivalent of interest | 1,284 | 1,700 | 1,503 | 1,651 | 3,258 | 338 | 3,448 | |||||||||||||||||||||
Adjusted earnings | $ | 4,824 | $ | 19,156 | $ | 33,267 | $ | 47,686 | $ | 52,416 | $ | (15,369 | ) | $ | (13,494 | ) | ||||||||||||
Fixed charges: | ||||||||||||||||||||||||||||
Interest expense | $ | 29,719 | $ | 33,033 | $ | 33,405 | $ | 27,504 | $ | 31,876 | $ | 1,978 | $ | 33,824 | ||||||||||||||
Capitalized interest | 3,097 | 2,281 | 983 | 221 | 875 | 241 | 1,484 | |||||||||||||||||||||
Portion of rental expense under operating leases deemed to be the equivalent of interest | 1,284 | 1,700 | 1,503 | 1,651 | 3,258 | 338 | 3,448 | |||||||||||||||||||||
Total fixed charges | $ | 34,100 | $ | 37,014 | $ | 35,891 | $ | 29,376 | $ | 36,009 | $ | 2,557 | $ | 38,756 | ||||||||||||||
Ratio of earnings to fixed charges(2)(3) | — | — | — | 1.6x | 1.5x | — | — |
(1) | The year ended January 3, 2009 includes 53 weeks. All other fiscal years reported include 52 weeks. | |
(2) | For the purposes of calculating the ratio of earnings to fixed charges, earnings consist of income from continuing operations before provision for income taxes plus fixed charges. Fixed charges include cash and non-cash interest expense, whether expensed or capitalized, amortization of debt issuance cost and the portion of rental expense representative of the interest factor. | |
(3) | For fiscal years ended January 3, 2009, December 29, 2007, and December 30, 2006, our earnings were insufficient to cover fixed charges by $2.6 million, $17.9 million and $29.3 million, respectively. Earnings were insufficient to cover fixed charges for the one month period ended January 28, 2011 and the eight months ended October 1, 2011 by $17.9 million and $52.3 million, respectively. | |