Exhibit 12.1
MSX INTERNATIONAL, INC. AND CONSOLIDATED SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(dollars in thousands)
FISCAL SIX MONTHS
FISCAL YEAR ENDED ENDED
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January 3, January 2, December 31, December 30, December 29,
1999 2000 2000 2001 2002 June 30, 2002 June 29, 2003
---------- ---------- ---------- ------------ ------------ ------------- -------------
Earnings before equity in
affiliates, income taxes
and fixed charges:
Income from continuing
operations before
income taxes .............. $ 5,839 $ 17,189 $ 26,997 $ 4,158 ($25,342) $ (287) $ (3,452)
Add interest on
indebtedness .............. 16,906 20,446 29,040 26,665 24,194 11,801 12,236
Add amortization of debt
expense ................... 510 695 1,079 1,216 1,737 766 1,072
Add estimated interest
factor for rentals (a)..... 7,442 6,100 7,529 8,041 8,559 5,125 5,751
---------- ---------- ---------- ---------- -------- --------- ----------
Earnings before equity in
affiliates, income
taxes and fixed charges.... $ 30,697 $ 44,430 $ 64,645 $ 40,080 $ 9,148 $ 17,405 $ 15,607
========== ========== ========== ========== ======== ========= ==========
Fixed charges:
Interest on indebtedness..... $ 16,906 $ 20,446 $ 29,040 $ 26,665 $ 24,194 $ 11,801 $ 12,236
Amortization of debt
expense ................... 510 695 1,079 1,216 1,737 766 1,072
Estimated interest factor
for rentals (a)............ 7,442 6,100 7,529 8,041 8,559 5,125 5,751
---------- ---------- ---------- ---------- -------- --------- ----------
$ 24,858 $ 27,241 $ 37,648 $ 35,922 $ 34,490 $ 17,692 $ 19,059
========== ========== ========== ========== ======== ========= ==========
Ratio of earnings to fixed
charges ........................ 1.2 1.6 1.7 1.1 (b) (b) (b)
PRO FORMA
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FISCAL YEAR ENDED FISCAL SIX MONTHS ENDED
DECEMBER 29, 2002 JUNE 29, 2003
----------------------- --------------------------
Earnings before equity in
affiliates, income taxes
and fixed charges:
Income from continuing
operations before
income taxes .............. $ (32,177) $ (6,558)
Add interest on
indebtedness .............. 30,148 15,066
Add amortization of debt
expense ................... 2,618 1,348
Add estimated interest
factor for rentals (a)..... 8,559 5,751
---------- ----------
Earnings before equity in
affiliates, income
taxes and fixed charges.... $ 9,148 $ 15,607
========== ==========
Fixed charges:
Interest on indebtedness..... $ 30,148 $ 15,066
Amortization of debt
expense ................... 2,618 1,348
Estimated interest factor
for rentals (a)............ 8,559 5,751
---------- ----------
$ 41,325 $ 22,165
========== ==========
Ratio of earnings to fixed
charges ........................ (c) (c)
(a) One third of all rent expense is deemed representative of the interest
factor.
(b) Earnings were insufficient to cover fixed charges by $25.3 million for the
fiscal year ended December 29, 2002, $0.3 million for the six months ended
June 30, 2002 and $3.5 million for the fiscal six months ended June 29,
2003.
(c) On a proforma basis, earnings were insufficient to cover fixed charges by
$32.2 million for the fiscal year ended December 29, 2002 and by $6.6
million for the fiscal six months ended June 29, 2003.