EXHIBIT 12.1
AKI, INC AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(dollars in thousands)
PREDECESSOR
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PRO FORMA
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FISCAL YEAR ENDED JUNE THREE MONTHS THREE MONTHS JULY 1,
30, ENDED ENDED 1997 THROUGH
----------------------- SEPTEMBER 30, SEPTEMBER 30, DECEMBER 15,
1996 1997 1997 1998 1997
----------- ----------- --------------- --------------- --------------
Income (loss) before income
taxes .......................... $ 4,279 $ 7,117 $ 3,083 $ 867 $ 3,234
Add:
Interest on all indebtedness
which includes amortization of
deferred financing costs ....... 6,762 6,203 1,451 3,249 2,646
-------- -------- ------- -------- -------
Earnings available for fixed
charges ........................ 11,041 13,320 4,534 4,116 5,880
Fixed charges ................... 6,762 6,203 1,451 3,249 2,646
-------- -------- ------- -------- -------
Ratio of earnings to fixed
charges ....................... 1.6x 2.1x 3.1x 1.3x 2.2x
THE COMPANY
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PRO FORMA
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DECEMBER 16, FISCAL YEAR THREE MONTHS
1997 THROUGH ENDED ENDED
JUNE 30, JUNE 30, SEPTEMBER 30,
1998 1998 1998
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Income (loss) before income
taxes .......................... $ (7,487) $ (4,094) $ 1,201
Add:
Interest on all indebtedness
which includes amortization of
deferred financing costs ....... 11,269 13,049 3,210
-------- -------- -------
Earnings available for fixed
charges ........................ 3,782 8,955 4,411
Fixed charges ................... 11,269 13,049 3,210
-------- -------- -------
Ratio of earnings to fixed
charges ....................... -- -- 1.4x
In accordance with Regulation S-K, the calculation of the ratio of earnings to
fixed charges for the pro forma three months ended September 30, 1997 and the
pro forma fiscal year ended June 30, 1998 includes the effects of the
Acquisition and the Refinancing, but does not include the effects of the 3M
Acquisition. Earnings were not sufficient to cover fixed charges by $7,487 and
$4,094 for the period from December 16, 1997 through June 30, 1998 and the pro
forma fiscal year ended June 30, 1998, respectively.