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EXHIBIT 12.1
ALTRA INDUSTRIAL MOTION
RATIO OF EARNINGS TO FIXED CHARGES
($ IN 000'S)
PREDECESSOR
------------------------------------------------
PRO-FORMA FROM 11 MONTHS
YEAR ENDED YEAR ENDED YEAR ENDED INCEPTION ENDED YEAR ENDED YEAR ENDED
DEC. 31, DEC. 31, DEC. 31, DEC. 1-31, NOV. 30, DEC. 31, DEC. 31,
2006 2006 2005 2004 2004 2003 2002
---------- ---------- ---------- ---------- --------- ---------- ----------
Net Income (loss) ................ $ 7,458 $10,363 $ 4,444 $(5,762) $ 6,895 $(9,306) $(108,223)
ADJUSTMENTS TO NET LOSS:
Cumulative effect of change
in accounting principle -
goodwill impairment ........ -- -- -- -- -- -- 83,412
Loss from discontinued
operations ................. -- -- -- -- -- -- 700
Interest expense .............. 35,804 23,522 17,065 1,410 4,294 5,368 5,489
Interest component of
operating rental expense ... 528 528 344 56 440 488 472
Income taxes .................. 4,149 6,352 3,917 (221) 5,532 (1,658) 2,455
------- ------- ------- ------- ------- ------- ---------
EARNINGS ......................... $47,939 $40,765 $25,770 $(4,517) $17,161 $(5,108) (15,695)
======= ======= ======= ======= ======= ======= =========
Fixed charges
Interest expense .............. $35,804 $23,522 $17,065 $ 1,410 $ 4,294 $ 5,368 $ 5,489
Interest component of
operating rental expense ... 528 528 344 56 440 488 472
------- ------- ------- ------- ------- ------- ---------
TOTAL FIXED CHARGES .............. $36,332 $24,050 $17,409 $ 1,466 $ 4,734 $ 5,856 5,961
------- ------- ------- ------- ------- ------- ---------
RATIO (1) (2) .................... 1.32 1.70 1.48 -- 3.63 -- --
------- ------- ------- ------- ------- ------- ---------
Pro-Forma
Quarter Quarter
Ended Ended
March 31, March 31,
2007 2007
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Net Income (loss) ................ $ 1,765 $ 3,791
ADJUSTMENTS TO NET LOSS:
Cumulative effect of change
in accounting principle -
goodwill impairment ........ -- --
Loss from discontinued
operations ................. -- --
Interest expense .............. 12,066 9,148
Interest component of
operating rental expense .. 80 80
Income taxes .................. 1,195 2,265
------- -------
EARNINGS ......................... $15,106 $15,284
======= =======
Fixed charges
Interest expense .............. $12,066 $ 9,148
Interest component of
operating rental expense ... 80 80
------- -------
TOTAL FIXED CHARGES .............. $12,146 $ 9,228
------- -------
RATIO (1) (2) .................... 1.24 1.66
------- -------
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(1) For purposes of calculating the ratio of earnings to fixed charges,
earnings represent income before income taxes, discontinued operations,
cumulative effect of change in accounting principle charges and fixed
charges. Fixed charges represent interest expense and a portion of rental
expense which we believe is representative of the interest component of
rental expense.
(2) Earnings were insufficient to cover fixed charges in the period December 1
to December 31, 2004, and each of the years ended December 31, 2003 and
2002 by $6.0 million, $11.0 million, and $21.7 million, respectively.