EX-12.1 2 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)

 

     Year Ended June 30,
     2006    2007    2008    2009     2010

Earnings, as defined:

              

Net income (loss)

    $ 32,794    $ 37,334    $ 19,901    $ (6,163 )    $ 19,533

Income taxes

      11,281      7,474      1,534      (8,316 )      3,293

Fixed charges, as defined below

      28,257      35,073      34,485      31,727        28,617
                                   

Total earnings, as defined below

    $ 72,332    $ 79,881    $ 55,920    $ 17,248      $ 51,443
                                   

Fixed charges, as defined below

    $ 28,257    $ 35,073    $ 34,485    $ 31,727      $ 28,617
                                   

Ratio of earnings to fixed charges(1)

      2.56      2.28      1.62      0.54        1.80
                                   

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 June 30, 2009, earnings were insufficient to cover fixed charges as evidenced by a less than one-to-one coverage ratio as shown above. Additional earnings of approximately $14.5 million were necessary for the fiscal year ended June 30, 2009 to provide a one-to-one coverage ratio.