POLYMER GROUP, INC.
Exhibit 12 - Calculation of Ratio of Earnings to Fixed Charges
Pro Forma
Pro Forma Six Months Six Months Six Months
Year Ended Ended Ended Ended
December 28, June 28, June 28, June 29,
1996 1997 1997 1996
------------ ------------ ------------ ------------
EARNINGS
- --------
Consolidated income (loss) before
income taxes and extraordinary item $30,453 $11,806 $16,401 $ 3,891
Undistributed dividend income from Fabrene - - - -
Share of equity loss from minority interest
in Fabrene (27%) - - - -
Interest 37,787 19,410 15,468 20,961
Interest capitalized during period and other credits (2,669) (1,936) (1,936) (1,356)
Amortization of capitalized debt costs 1,849 1,003 350 575
------- ------- ------- -------
Earnings $67,420 $30,283 $30,283 $24,071
------- ------- ------- -------
FIXED CHARGES
- --------------
Interest $37,787 $19,410 $15,468 $20,961
Amortization of capitalized debt costs 1,849 1,003 350 575
Interest portion of rental expense - - - -
------- ------- ------- -------
Fixed charges $39,636 $20,413 $15,818 $21,536
------- ------- ------- -------
Ratio of earnings to fixed charges (A) 1.7 1.5 1.9 1.1
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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
------------ ------------ ------------ ---------- ---------------
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
------- -------- -------- ------- ------
Earnings $60,664 $ 20,627 $ (810) $10,724 $ 285
------- -------- -------- ------- ------
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 - - - - -
------- -------- -------- ------- ------
Fixed charges $37,781 $ 40,951 $ 14,222 $ 5,173 $1,013
------- -------- -------- ------- ------
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 and the year ended December 30, 1995 by
approximately $0.7 million, $15.0 million and $20.3 million, respectively.
However, the Company met all required interest payment and debt obligations
during this time period.