EX-12.1 4 b77711exv12w1.htm EX-12.1 COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES exv12w1
Exhibit 12.1
Altra Holdings, Inc.
Computation of Ratio of Earnings to Fixed Charges
     The ratio of earnings to fixed charges is determined using the following applicable factors:
     Earnings is the amount of income before income taxes, discontinued operations, cumulative effect of change in accounting principle charges, and fixed charges, as defined below.
     Fixed charges is the sum of (i) interest expense and (ii) a portion of rental expense which we believe is representative of the interest component of rental expense.
     The table also includes the computation of the ratio of earnings to fixed charges for our predecessor, Power Transmission Holding LLC, for the period from January 1, 2004 through November 30, 2004.
                                                         
                                                    Period from  
                                            Period from     January 1,  
    Six Months                                     December 1,     2004 to  
    Ended                                     2004 to     November 30,  
    June 27,     Fiscal Year Ended December 31,     December 31,     2004  
($ in Thousands) (Unaudited)   2009     2008     2007     2006     2005     2004     Predecessor  
Earnings
                                                        
Net Income (loss)
   $ (348 )   $ 6,494     $ 11,511     $ 10,363     $ 4,444     $ (5,762 )   $ 6,895  
Adjustments to Net Income (loss):
                                                        
(Gain) loss from discontinued operations
     —       (224 )     2,001       —       —       —       —  
Interest expense
     12,589       28,339       38,554       23,522       17,065       1,410       4,294  
Interest component of operating rental expense
     219       437       356       528       344       56       440  
Income taxes
     172       16,731       8,208       6,352       3,917       (221 )     5,532  
 
                                          
EARNINGS
   $ 12,632     $ 51,777     $ 60,630     $ 40,765     $ 25,770     $ (4,517 )   $ 17,161  
 
                                                        
Fixed Charges
                                                        
Interest expense, net
   $ 12,589     $ 28,339     $ 38,554     $ 23,522     $ 17,065     $ 1,410     $ 4,294  
Interest component of operating rental expense
     219       437       356       528       344       56       440  
 
                                          
TOTAL FIXED CHARGES
   $ 12,808     $ 28,776     $ 38,910     $ 24,050     $ 17,409     $ 1,466     $ 4,734  
 
                                                        
RATIO OF EARNINGS TO FIXED CHARGES
     *      1.80 x      1.56 x      1.70 x      1.48 x      *      3.63 x 
 
                                                        
* Insufficient earnings to cover fixed charges
   $ (176 )   $ —     $ —     $ —     $ —     $ (5,983 )   $ —  
     For the periods indicated above, we had no outstanding shares of preferred stock with required dividend payments. Therefore, our ratios of earnings to combined fixed charges and preferred stock dividends for the periods indicated are identical to the ratios presented in the table above.