MIDDLE AMERICAN TISSUE
CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES
9 months 9 months LTM
1994 1995 1996 1997 1998 6/30/98 6/30/99 3/31/99
---- ---- ---- ---- ---- ------- ------- -------
Income before taxes 4,901 (1,733) 13,182 6,873 (1,474) (1,589) 8,237 3,388
Add Fixed Charges
Interest expenses 4,945 6,822 9,175 12,272 14,672 9,641 10,890 15,346
Est interest on rent 757 816 547 670 688 509 516 695
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10,603 6,005 22,904 19,815 13,886 8,561 19,643 19,429
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5,702 7,738 9,722 12,942 15,360 10,150 11,406 16,616
Ratio 1.9 0.8 2.4 1.5 0.9 0.8 1.7 1.2
times times times times times times times times
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Rent Expense 2,270 2,447 1,642 2,010 2,065 1,528 1,548 2,086
(Unrelated parties ONLY
Apply factor 0.33 0.33 0.33 0.33 0.33 0.33 0.33 0.33
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757 816 547 670 686 509 516 695
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PRO FORMA COMBINED FOR A LTM PERIOD (12 months 3/31/99):
Normal Calculations:
Income before taxes (126,316)
Add Fixed Charges:
Interst expense 24,640
Est. interest on Rent 1,058
--------
EBT plus Fixed Charges (100,619)
--------
Total Fixed Charges 25,698
RATIO (3.9)
times
Adjusted Calculation:
Income before taxes 22,261
Add Fixed Charges
Interest expense 24,640
Est. interest on Rent 1,058
--------
47,958
--------
25,698
RATIO 1.9
times
EBT, AS ADJUSTED
Net income (57,268)
Tax benefit (69,048) (126,316)
NRV-adjustement 16,175
Asset impairment 143,632
Severance (2,273)
Property Tax (8,957)
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22,261
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Estimated interest on Rent:
ATI 695
BG
1100 0.33 363
--------
1,058
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