EX-12.1 2 pgi-12312014xex121.htm EXHIBIT 12.1 PGI - 12/31/2014 - Ex 12.1



Exhibit 12.1
POLYMER GROUP, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Unaudited)
 
Predecessor
 
 
 
 
Successor
In thousands, except ratio data
Fiscal Year Ended January 1, 2011
 
One Month Ended January 28, 2011
 
 
Eleven Months Ended December 31, 2011
 
Fiscal Year Ended December 29, 2012
 
Fiscal Year Ended December 28, 2013
 
Fiscal Year Ended December 31, 2014
Income (loss) before income taxes
$
16,329

 
$
(17,753
)
 
 
$
(73,101
)
 
$
(18,383
)
 
$
(60,991
)
 
$
(120,763
)
Add:
 
 
 
 
 
 
 
 
 
 
 
 
Interest Expense
31,876

 
1,978

 
 
46,913

 
50,859

 
56,351

 
97,309

Amortizations of capitalized interest
953

 
68

 
 
112

 
238

 
422

 
523

Portion of rental expense under operating leases deemed to be the equivalent of interest
3,258

 
338

 
 
2,704

 
4,843

 
5,134

 
6,691

Adjusted earnings
$
52,416

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

 
$
916

 
$
(16,240
)
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
$
31,876

 
$
1,978

 
 
$
46,913

 
$
50,859

 
$
56,351

 
$
97,309

Capitalized interest
875

 
241

 
 
1,783

 
1,823

 
1,577

 
1,629

Portion of rental expense under operating leases deemed to be the equivalent of interest
3,258

 
338

 
 
2,704

 
4,843

 
5,134

 
6,691

Total fixed charges
$
36,009

 
$
2,557

 
 
$
51,400

 
$
57,525

 
$
63,062

 
$
105,629

Ratio of earnings to fixed charges (2)(3)
1.5x

 

 
 

 

 

 

(1)
All fiscal years reported include 52 weeks.
(2)
For the purposes of calculating the ratio of earnings to fixed charges, earnings consist of income (loss) before 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 31, 2014, fiscal year ended December 28, 2013, the fiscal year ended December 29, 2012, the eleven month period ended December 31, 2011, and the one month period ended January 28, 2011 by $121.9 million, $62.1 million, $20.0 million, $74.8 million, and $17.9 million, respectively.