EX-12.1 6 dex121.htm RATIO OF EARNINGS TO FIXED CHARGES. Ratio of earnings to fixed charges.

Exhibit 12.1

ELIZABETH ARDEN, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Dollars in thousands)

 

     Years Ended January 31,     Five-Month
Transition
Ended
June 30,
    Years Ended June 30,
     2003    2004     2004     2005    2006    2007

Earnings (loss), as defined:

               

Net income (loss)

   $ 18,150    $ 2,036     $ (31,843 )   $ 37,604    $ 32,794    $ 37,334

Income taxes

     7,059      (4,112 )     (14,188 )     17,403      11,281      7,474

Fixed charges, as defined below

     45,742      43,226       11,468       27,893      28,257      35,073
                                           

Total earnings, as defined

   $ 70,951    $ 41,150     $ (34,563 )   $ 82,900    $ 72,332    $ 79,881
                                           

Fixed charges, as defined

   $ 45,742    $ 43,226     $ 11,468     $ 27,893    $ 28,257    $ 35,073
                                           

Total fixed charges, as defined

   $ 45,742    $ 43,226     $ 11,468     $ 27,893    $ 28,257    $ 35,073
                                           

Ratio of earnings to fixed charges

     1.55      0.95 (1)     (2 )     2.97      2.56      2.28
                                           

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 were necessary for the fiscal year ended January 31, 2004 to provide a one-to-one coverage ratio.
(2) 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 were necessary for the five-month transition fiscal year ended June 30, 2004 to provide a one-to-one coverage ratio.