EX-12.1 7 dex121.htm COMPUTATION OF EARNINGS TO FIXED CHARGES COMPUTATION OF EARNINGS TO FIXED CHARGES

EXHIBIT 12.1

Elizabeth Arden

COMPUTATION OF EARNINGS TO FIXED CHARGES

(Dollars in thousands)

 

                      Five-Month
Transition
Ended
June 30,
    Years Ended June 30,
     2002     2003    2004     2004     2005    2006

Earnings, as defined:

              

Net income (loss)

   $ (29,837 )   $ 18,150    $ 2,036     $ (31,843 )   $ 37,604    $ 32,794

Income taxes

     (9,014 )     7,059      (4,112 )     (14,188 )     17,403      11,281

Fixed charges, as defined below

     47,433       45,742      43,226       11,468       27,893      28,257
                                            

Total earnings as defined

   $ 8,582     $ 70,951    $ 41,150     $ (34,563 )   $ 82,900    $ 72,332
                                            

Fixed charges, as defined

   $ 47,433     $ 45,742    $ 43,226     $ 11,468     $ 27,893    $ 28,257
                                            

Total fixed charges, as defined

   $ 47,433     $ 45,742    $ 43,226     $ 11,468     $ 27,893    $ 28,257
                                            

Ratio of earnings to fixed charges

     (1 )     1.55      0.95 (2)     (3 )     2.97      2.56
                                            

The Company’s consolidated ratios of earnings to fixed charges were computed by dividing earnings by fixed charges.

For this purpose, earnings are the sum of income (loss) from continuing operations, taxes, and fixed charges. Fixed charges include interest, amortization of debt expense, discount on premium relating to indebtedness and one-third of rental expense.

 


(1) For the fiscal year ended January 31, 2004, earnings are insufficient to cover fixed charges as evidenced by a less than one-to-one coverage ratio as shown above. Additional earnings of approximately $2.1 million was necessary for the fiscal year ended January 31, 2004 to provide a one-to-one coverage ratio.
(2) For the fiscal year ended January 31, 2002, earnings are insufficient to cover fixed charges as evidenced by a less than one-to-one coverage ratio as shown above. Additional earnings of approximately $38.9 million was necessary for the fiscal year ended January 31, 2002 to provide a one-to-one coverage ratio.
(3) For the five-month transition fiscal year ended June 30, 2004, earnings are insufficient to cover fixed charges as evidenced by a less than one-to-one coverage ratio as shown above. Additional earnings of approximately $46.0 million was necessary for the five-month transition fiscal year ended June 30, 2004 to provide a one-to-one coverage ratio.