EX-12.1 3 b66411a1exv12w1.txt EX-12.1 COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES . . . EXHIBIT 12.1 ALTRA INDUSTRIAL MOTION RATIO OF EARNINGS TO FIXED CHARGES ($ IN 000'S)
PREDECESSOR ------------------------------------------------ PRO-FORMA FROM 11 MONTHS YEAR ENDED YEAR ENDED YEAR ENDED INCEPTION ENDED YEAR ENDED YEAR ENDED DEC. 31, DEC. 31, DEC. 31, DEC. 1-31, NOV. 30, DEC. 31, DEC. 31, 2006 2006 2005 2004 2004 2003 2002 ---------- ---------- ---------- ---------- --------- ---------- ---------- Net Income (loss) ................ $ 7,458 $10,363 $ 4,444 $(5,762) $ 6,895 $(9,306) $(108,223) ADJUSTMENTS TO NET LOSS: Cumulative effect of change in accounting principle - goodwill impairment ........ -- -- -- -- -- -- 83,412 Loss from discontinued operations ................. -- -- -- -- -- -- 700 Interest expense .............. 35,804 23,522 17,065 1,410 4,294 5,368 5,489 Interest component of operating rental expense ... 528 528 344 56 440 488 472 Income taxes .................. 4,149 6,352 3,917 (221) 5,532 (1,658) 2,455 ------- ------- ------- ------- ------- ------- --------- EARNINGS ......................... $47,939 $40,765 $25,770 $(4,517) $17,161 $(5,108) (15,695) ======= ======= ======= ======= ======= ======= ========= Fixed charges Interest expense .............. $35,804 $23,522 $17,065 $ 1,410 $ 4,294 $ 5,368 $ 5,489 Interest component of operating rental expense ... 528 528 344 56 440 488 472 ------- ------- ------- ------- ------- ------- --------- TOTAL FIXED CHARGES .............. $36,332 $24,050 $17,409 $ 1,466 $ 4,734 $ 5,856 5,961 ------- ------- ------- ------- ------- ------- --------- RATIO (1) (2) .................... 1.32 1.70 1.48 -- 3.63 -- -- ------- ------- ------- ------- ------- ------- --------- Pro-Forma Quarter Quarter Ended Ended March 31, March 31, 2007 2007 ---------- ---------- Net Income (loss) ................ $ 1,765 $ 3,791 ADJUSTMENTS TO NET LOSS: Cumulative effect of change in accounting principle - goodwill impairment ........ -- -- Loss from discontinued operations ................. -- -- Interest expense .............. 12,066 9,148 Interest component of operating rental expense .. 80 80 Income taxes .................. 1,195 2,265 ------- ------- EARNINGS ......................... $15,106 $15,284 ======= ======= Fixed charges Interest expense .............. $12,066 $ 9,148 Interest component of operating rental expense ... 80 80 ------- ------- TOTAL FIXED CHARGES .............. $12,146 $ 9,228 ------- ------- RATIO (1) (2) .................... 1.24 1.66 ------- -------
---------- (1) For purposes of calculating the ratio of earnings to fixed charges, earnings represent income before income taxes, discontinued operations, cumulative effect of change in accounting principle charges and fixed charges. Fixed charges represent interest expense and a portion of rental expense which we believe is representative of the interest component of rental expense. (2) Earnings were insufficient to cover fixed charges in the period December 1 to December 31, 2004, and each of the years ended December 31, 2003 and 2002 by $6.0 million, $11.0 million, and $21.7 million, respectively.