EX-12 2 ex12.htm RATIO OF EARNINGS TO FIXED CHARGES ex12.htm


 
EXHIBIT 12
 
CHECKPOINT SYSTEMS, INC.
RATIO OF EARNINGS TO FIXED CHARGES
(UNAUDITED)

(amounts in thousands)
2010
2009
2008
2007
2006
Interest expense(1)
$   7,740
$   8,349
$     5,955
$   2,534
$   2,307
Interest factor in rental expense
5,634
6,128
5,021
5,102
4,898
(a) Fixed charges, as defined
13,374
14,477
10,976
7,636
7,205
Earnings (loss) from continuing operations before income taxes
37,022
35,985
(29,209)
70,576
41,975
Fixed charges
13,374
14,477
10,976
7,636
7,205
(b) Earnings (loss), as defined
$ 50,396
$ 50,462
$ (18,233)
$ 78,212
$ 49,180
(c) Ratio of earnings to fixed charges (b / a)
3.8x
3.5x
—
10.2x
6.8x

(1)  
Includes amortization of finance costs.

The ratio of earnings to fixed charges is computed by dividing earnings by fixed charges. “Earnings” consist of earnings from continuing operations before income taxes plus fixed charges. “Fixed Charges” consist of interest expense plus one-third of rental expense (which amount is considered representative of the interest factor in rental expense). Earnings, as defined, were sufficient to cover fixed charges for all years disclosed in the above table except for 2008. Earnings in 2008 were not sufficient to cover fixed charges by approximately $29 million.