1
EXHIBIT 12.1
PILLOWTEX CORPORATION
CALCULATION OF EARNINGS TO FIXED CHARGES RATIOS
(DOLLARS IN THOUSANDS)
NINE MONTHS
NINE MONTHS ENDED SEPTEMBER 28,
YEAR ENDED DECEMBER 28, 1996 ENDED SEPTEMBER 27, 1997 1996
---------------------------------- ---------------------------------- ----------------------
PILLOWTEX FIELDCREST PRO FORMA PILLOWTEX FIELDCREST PRO FORMA PILLOWTEX FIELDCREST
--------- ---------- --------- --------- ---------- --------- --------- ----------
EARNINGS:
Earnings before income
taxes...................... $24,191 $ 1,174 $16,377 $17,274 $22,770 $30,247 $14,049 $(2,038)
Fixed charges................ 16,843 33,736 72,705 16,726 23,708 60,191 11,987 26,646
------- ------- ------- ------- ------- ------- ------- -------
Earnings as adjusted(A).... $41,034 $34,910 $89,082 $34,000 $46,478 $90,437 $26,036 $24,608
======= ======= ======= ======= ======= ======= ======= =======
FIXED CHARGES:
Interest expense............. $13,971 $26,869 $63,446 $13,957 $18,708 $52,635 $10,279 $21,496
Interest capitalized......... 273 -- 273 470 -- 470 -- --
Amortization of debt issuance
costs...................... 839 -- 360 638 -- 425 408 --
Interest Component of Rent
Expense (Note 1)........... 1,760 6,867 8,626 1,661 5,000 6,661 1,300 5,150
------- ------- ------- ------- ------- ------- ------- -------
Fixed charges as
adjusted(B).............. $16,843 $33,736 $72,705 $16,726 $23,708 $60,191 $11,987 $26,646
======= ======= ======= ======= ======= ======= ======= =======
RATIO OF EARNINGS TO FIXED
CHARGES (A) DIVIDED BY (B)... 2.44 1.03 1.23 2.03 1.96 1.50 2.17 0.92
======= ======= ======= ======= ======= ======= ======= =======
- ---------------
Note 1: Approximately one-third of rent expense which management believes is
representative of the interest component.
2
2
PILLOWTEX CORPORATION
CALCULATION OF EARNINGS TO FIXED CHARGES RATIOS
(DOLLARS IN THOUSANDS)
PILLOWTEX YEARS ENDED FIELDCREST YEARS ENDED
----------------------------------------------- ------------------------------------------------
1992 1993 1994 1995 1996 1992 1993 1994 1995 1996
------- ------- ------- ------- ------- ------- ------- ------- -------- -------
EARNINGS:
Earnings before income
taxes.................... $11,429 $21,200 $12,425 $18,978 $24,191 $26,576 $26,879 $46,283 $(27,809) $ 1,174
Fixed charges.............. 5,624 3,666 7,004 19,055 16,843 40,449 33,959 30,001 34,963 33,736
------- ------- ------- ------- ------- ------- ------- ------- -------- -------
Earnings as
adjusted(A)............ $17,053 $24,866 $19,429 $38,033 $41,034 $67,025 $60,838 $76,284 $ 7,154 $34,910
======= ======= ======= ======= ======= ======= ======= ======= ======== =======
FIXED CHARGES:
Interest expense........... $ 4,997 $ 3,042 $ 6,361 $17,491 $13,971 $34,149 $27,659 $23,268 $ 27,630 $26,869
Interest capitalized....... -- -- -- -- 273 -- -- -- -- --
Amortization of debt
issuance costs........... -- -- -- 544 839 -- -- -- -- --
Interest Component of Rent
Expense (Note 1)......... 627 624 643 1,020 1,760 6,300 6,300 6,733 7,333 6,867
------- ------- ------- ------- ------- ------- ------- ------- -------- -------
Fixed charges as
adjusted(B)............ $ 5,624 $ 3,666 $ 7,004 $19,055 $16,843 $40,449 $33,959 $30,001 $ 34,963 $33,736
======= ======= ======= ======= ======= ======= ======= ======= ======== =======
RATIO OF EARNINGS TO FIXED
CHARGES (A) DIVIDED BY
(B)........................ 3.03 6.78 2.77 2.00 2.44 1.66 1.79 2.54 0.20 1.03
======= ======= ======= ======= ======= ======= ======= ======= ======== =======
- ---------------
Note 1: Approximately one-third of rent expense which management believes is
representative of the interest component.