Exhibit 12.1
MSX INTERNATIONAL, INC. AND CONSOLIDATED SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(dollars in thousands)
FISCAL NINE MONTHS
FISCAL YEAR ENDED ENDED
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January 3, January 2, December 31, December 30, December 29, September 29 September 28,
1999 2000 2000 2001 2002 2002 2003
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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) $ (488) $ (13,508)
Add interest on
indebtedness .............. 16,906 20,446 29,040 26,665 24,194 18,127 17,453
Add amortization of debt
expense ................... 510 695 1,079 1,216 1,737 1,332 5,260
Add estimated interest
factor for rentals (a)..... 7,442 6,100 7,529 8,041 8,559 7,729 8,442
---------- ---------- ---------- ---------- -------- --------- ----------
Earnings before equity in
affiliates, income
taxes and fixed charges.... $ 30,697 $ 44,430 $ 64,645 $ 40,080 $ 9,148 $ 26,700 $ 17,647
========== ========== ========== ========== ======== ========= ==========
Fixed charges:
Interest on indebtedness..... $ 16,906 $ 20,446 $ 29,040 $ 26,665 $ 24,194 $ 18,127 $ 17,453
Amortization of debt
expense ................... 510 695 1,079 1,216 1,737 1,332 5,260
Estimated interest factor
for rentals (a)............ 7,442 6,100 7,529 8,041 8,559 7,729 8,442
---------- ---------- ---------- ---------- -------- --------- ----------
$ 24,858 $ 27,241 $ 37,648 $ 35,922 $ 34,490 $ 27,188 $ 31,155
========== ========== ========== ========== ======== ========= ==========
Ratio of earnings to fixed
charges ........................ 1.2 1.6 1.7 1.1 (b) (b) (b)
(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, $0.4 million for the nine months ended
September 29, 2002 and $13.5 million for the fiscal nine months ended
September 28, 2003.