POLYMER GROUP, INC.
Exhibit 12 - Calculation of Ratio of Earnings to Fixed Charges
Pro Forma
Pro Forma Three Months Three Months Three Months
Year Ended Ended Ended Ended
December 28, March 29, March 29, March 30,
1996 1997 1997 1996
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EARNINGS
- --------
Consolidated income (loss) before
income taxes and extraordinary item $30,453 $ 5,271 $ 7,415 $ (627)
Undistributed dividend income from Fabrene - - - -
Share of equity loss from minority interest
in Fabrene (27%) - - - -
Interest 37,787 9,447 7,590 11,257
Interest capitalized during period and other credits (2,669) (756) (756) (678)
Amortization of capitalized debt costs 1,849 432 175 288
------- ------- ------- -------
Earnings $67,420 $14,394 $14,424 $10,240
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FIXED CHARGES
- --------------
Interest $37,787 $ 9,447 $ 7,590 $11,257
Amortization of capitalized debt costs 1,849 432 175 288
Interest portion of rental expense - - - -
------- ------- ------- -------
Fixed charges $39,636 $ 9,879 $ 7,765 $11,545
------- ------- ------- -------
Ratio of earnings to fixed charges (A) 1.7 1.5 1.9 -
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Fiscal Year Ended
---------------------------------------------------- Ten-Week
December 28, December 30, December 31, January 1, Period Ended
1996 1995 1994 1994 January 2, 1993
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EARNINGS
- --------
Consolidated income (loss) before
income taxes and extraordinary item $25,552 $(18,391) $(14,985) $ 5,410 $ (615)
Undistributed dividend income from Fabrene - - (246) (340) (113)
Share of equity loss from minority interest
in Fabrene (27%) - - 682 753 -
Interest 36,310 39,801 13,699 4,659 915
Interest capitalized during period and other credits (2,669) (1,933) (483) (272) -
Amortization of capitalized debt costs 1,471 1,150 523 514 98
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Earnings $60,664 $ 20,627 $ (810) $10,724 $ 265
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FIXED CHARGES
- -------------
Interest $36,310 $ 39,801 $ 13,699 $ 4,659 $ 915
Amortization of capitalized debt costs 1,471 1,150 523 514 98
Interest portion of rental expense - - - - -
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Fixed charges $37,781 $ 40,951 $ 14,222 $ 5,173 $1,013
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Ratio of earnings to fixed charges (A) 1.6 - - 2.1 -
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(A) Fixed charges exceeded earnings for the ten-week period ended January 2,
1993, the year ended December 31, 1994, the year ended December 30, 1995 and the
three months ended March 30, 1996 by approximately $0.7 million, $15.0 million,
$20.3 million and $1.3 million, respectively. However, the Company met all
required interest payment and debt obligations during this time period.