EXHIBIT 12
PLASTIPAK HOLDINGS, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLAR AMOUNTS IN THOUSANDS)
Years ended
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11/2/96 11/1/97 10/31/98 10/30/99 10/28/00
Earnings before income taxes, extraordinary item $ 7,446 $ 10,000 $ (2,530) $ 6,503 $ (388)
and change in accounting principal
Add:
Interest on indebtedness 9,533 15,063 22,079 27,157 28,390
Portion of rents representative of the interest factor 4,349 5,045 3,900 4,407 4,241
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Earnings available for fixed charges $ 21,328 $ 30,108 $ 23,449 $ 38,067 $ 32,243
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Fixed Charges:
Interest on indebtedness $ 9,533 $ 15,063 $ 22,079 $ 27,157 $ 28,390
Portion of rents representative of the interest factor 4,349 5,045 3,900 4,407 4,241
Amortization of loan costs -- -- -- 22 1,243
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Total fixed charges $ 13,882 $ 20,108 $ 25,979 $ 31,586 $ 33,874
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Ratio of earnings to fixed charges 1.54X 1.50X 0 1.21X 0
(a) (a)
Pro Forma
12 months
Nine months ended Ended
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7/29/00 8/4/01 8/4/01
Earnings before income taxes, extraordinary item $ (7,377) $ 10,050 $ 11,711
and change in accounting principal
Add:
Interest on indebtedness 21,298 21,758 34,179
Portion of rents representative of the interest factor 3,250 2,750 3,741
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Earnings available for fixed charges $ 17,171 $ 34,558 $ 49,631
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Fixed Charges:
Interest on indebtedness $ 21,298 $ 21,758 $ 34,179
Portion of rents representative of the interest factor 3,250 2,750 3,741
Amortization of loan costs 911 453 786
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Total fixed charges $ 25,459 $ 24,961 $ 38,706
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Ratio of earnings to fixed charges 0 1.38X 1.28X
(a)
(a)For the nine months ended July 29, 2000, and the years ended October
28, 2000 and October 31, 1998, earnings were inadequate to cover
fixed charges by $8,288, $1,631 and $2,530, respectively. On a
proforma basis, after giving effect to the sale of the outstanding
notes, the ratio of earnings to fixed charges for the nine months
ended August 4, 2001 would have been 1.19X.