EX-12.1 3 polymergroup-12292012xex121.htm RATIO OF EARNINGS TO FIXED CHAGES PolymerGroup-12.29.2012-Ex 12.1



Exhibit 12.1
POLYMER GROUP, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Unaudited)
In thousands, except ratio data
Predecessor
 
 
Successor
Fiscal Year Ended (1)
 
One Month Ended January 28, 2011
Eleven Months Ended December 31, 2011
 
Fiscal Year Ended December 29, 2012
January 3, 2009
 
January 2, 2010
 
January 1, 2011
Income (loss) from continuing operations before provision (benefit) for income taxes
$
(2,543
)
 
$
17,601

 
$
16,329

 
$
(17,753
)
 
 
$
(73,101
)
 
$
(18,383
)
Add:
 
 
 
 
 
 
 
 
 
 
 
 
Interest Expense
33,405

 
27,504

 
31,876

 
1,978

 
 
46,913

 
50,859

Amortizations of capitalized interest
902

 
930

 
953

 
68

 
 
112

 
238

Portion of rental expense under operating leases deemed to be the equivalent of interest
1,503

 
1,651

 
3,258

 
338

 
 
2,704

 
4,843

Adjusted earnings
$
33,267

 
$
47,686

 
$
52,416

 
$
(15,369
)
 
 
$
(23,372
)
 
$
37,557

Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
$
33,405

 
$
27,504

 
$
31,876

 
$
1,978

 
 
$
46,913

 
$
50,859

Capitalized interest
983

 
221

 
875

 
241

 
 
1,783

 
1,823

Portion of rental expense under operating leases deemed to be the equivalent of interest
1,503

 
1,651

 
3,258

 
338

 
 
2,704

 
4,843

Total fixed charges
$
35,891

 
$
29,376

 
$
36,009

 
$
2,557

 
 
$
51,400

 
$
57,525

Ratio of earnings to fixed charges (2)(3)
—

 
1.6x

 
1.5x

 
—

 
 
—

 
—


(1)
The year ended January 3, 2009 includes 53 weeks. All other fiscal years reported include 52 weeks.
(2)
For the purposes of calculating the ratio of earnings to fixed charges, earnings consist of income from continuing operations before provision for income taxes plus fixed charges. Fixed charges include cash and non-cash interest expense, whether expensed or capitalized, amortization of debt issuance cost and the portion of rental expense representative of the interest factor.
(3)
Earnings were insufficient to cover fixed charges for the fiscal year ended December 29, 2012, the eleven month period ended December 31, 2011, the one month period ended January 28, 2011 and the fiscal year ended by January 3, 2009 by $20.0 million, $74.8 million, $17.9 million, and $2.6 million, respectively.