Exhibit 12
Collins & Aikman Corporation
Computation of Ratio of Earnings to Fixed Charges
(dollar amounts in thousands)
Fiscal year ending January
--------------------------------------------------------------------------------
1992 1993 1994 1995 1996
---------------- ---------------- ---------------- ------------- -------------
Earnings:
Income (loss) from continuing
operations before income taxes ($54,557) ($49,191) ($143,863) $80,921 $91,202
Add:
Interest expense-continuing operations 114,310 114,432 115,396 81,410 49,525
Interest component of rental expense-
continuing operations 3,354 3,918 3,863 4,353 5,439
Loss on sale of receivables ---- ---- ---- 7,616 8,688
Preferred stock dividends of subsidiary 4,515 4,514 4,533 2,258 ----
---------------- ---------------- ---------------- ----------- ---------------
67,622 73,673 (20,071) 176,558 154,854
---------------- ---------------- ---------------- ----------- ---------------
Fixed Charges:
Interest expense-continuing operations 114,310 114,432 115,396 81,410 49,525
Interest expense-discontinued operations 27,151 23,836 19,663 714 733
Loss on sale of receivables ---- ---- ---- 7,616 8,688
Preferred stock dividends of subsidiary 4,515 4,514 4,533 2,258 ----
Interest component of rental expense-
continuing operations 3,354 3,918 3,863 4,353 5,439
Interest component of rental expense-
discontinued operations 10,692 12,138 9,572 3,002 2,315
---------------- ---------------- ---------------- ------------- --------------
160,022 158,838 153,027 99,353 66,700
---------------- ---------------- ---------------- ------------- --------------
Earnings in excess of (less than) fixed charges ($92,400) ($85,165) ($173,098) $77,205 $88,154
================ ================ ================ ============= ==============
Ratio (N/A) (N/A) (N/A) 1.8 2.3
================ ================ ================ ============= ==============
For purposes of determining the ratio of earnings to fixed charges, earnings
are defined as income (loss) from continuing operations before income taxes,
plus fixed charges relating to continuing operations. Fixed charges consist
of interest expense on all indebtedness (including amortization of deferred
debt issuance costs), loss on sale of receivables, preferred stock dividends
of subsidiaries and the portion of operating lease rental expense that is
representative of the interest factor. Earnings were inadequate to cover fixed
charges for the fiscal years ending January 1992 through 1994.