EX-12.1 3 e60936598ex12_1.htm EXHIBIT 12.1 - RATIO OF EARNINGS TO FIXED CHARGES e60936598ex12_1.htm
 

Exhibit 12.1

RATIO OF EARNINGS TO FIXED CHARGES

The following table shows the ratio of earnings to fixed charges of the Company for the periods indicated.  For purposes of computing the ratio of earnings to fixed charges, earnings represents income (loss) from continuing operations before income taxes and fixed charges.

   
Year
ended
December 31,
2005
  
Year
ended
December 30,
2006
  
Year
ended
December 29,
2007
  
Year
ended
January 3,
2009
  
Year
ended
January 2,
2010
  
Pro Forma
Year
ended
January 2,
2010
  
Earnings:
                                      
Income (loss) from continuing operations before taxes
  
$
(105,753
)
$
(32,286
)
$
33,885
  
$
(315,588
)
$
(55,590
)
$
(74,130
)
Interest expense, including amortization of debt issuance costs
    
73,821
    
60,980
    
91,467
    
107,321
    
106,063
    
124,603
  
Interest portion of rental expense (1)
    
13,100
    
12,033
    
14,467
    
13,400
    
11,133
    
11,133
  
Total Earnings:
    
(18,832
)
  
40,727
    
139,819
    
(194,867
)
  
61,606
    
61,606
  
                                       
Fixed Charges:
                                      
Interest expense, including amortization of debt issuance costs
    
73,821
    
60,980
    
91,467
    
107,321
    
106,063
    
124,603
  
Interest portion of rental expense (1)
    
13,100
    
12,033
    
14,467
    
13,400
    
11,133
    
11,133
  
Total Fixed Charges:
  
$
86,921
  
$
73,013
  
$
105,934
  
$
120,721
  
$
117,196
  
$
135,736
  
                                       
Ratio of Earnings to Fixed Charges
    
—
(2)
  
0.6
x(2)
  
1.3
x(2)
  
—
(2)
  
0. 5
x(2)
  
0. 5
x(3)

___________________
 
(1)
Calculated as one third of rent expense, which is a reasonable approximation of the interest factor.
 
 
(2)
For the years ended December 31, 2005, December 30, 2006, January 3, 2009 and January 2, 2010, earnings were inadequate to cover fixed charges by approximately $105.8 million, $32.3 million, $315.6 million and $55.6 million, respectively.
 
 
(3)
The pro forma ratio of earnings to fixed charges gives effect to the net incremental interest expense related to the repayment of outstanding borrowings under our credit facilities with the net proceeds from the offering of the notes.  Pro forma, for the year ended January 2, 2010, earnings were inadequate to cover fixed charges by approximately $74.1 million.