EX-12.1 19 k79382exv12w1.txt COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Exhibit 12.1 MSX INTERNATIONAL, INC. AND CONSOLIDATED SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (dollars in thousands)
FISCAL SIX MONTHS FISCAL YEAR ENDED ENDED ------------------------------------------------------------------- ----------------------------- January 3, January 2, December 31, December 30, December 29, 1999 2000 2000 2001 2002 June 30, 2002 June 29, 2003 ---------- ---------- ---------- ------------ ------------ ------------- ------------- Earnings before equity in affiliates, income taxes and fixed charges: Income from continuing operations before income taxes .............. $ 5,839 $ 17,189 $ 26,997 $ 4,158 ($25,342) $ (287) $ (3,452) Add interest on indebtedness .............. 16,906 20,446 29,040 26,665 24,194 11,801 12,236 Add amortization of debt expense ................... 510 695 1,079 1,216 1,737 766 1,072 Add estimated interest factor for rentals (a)..... 7,442 6,100 7,529 8,041 8,559 5,125 5,751 ---------- ---------- ---------- ---------- -------- --------- ---------- Earnings before equity in affiliates, income taxes and fixed charges.... $ 30,697 $ 44,430 $ 64,645 $ 40,080 $ 9,148 $ 17,405 $ 15,607 ========== ========== ========== ========== ======== ========= ========== Fixed charges: Interest on indebtedness..... $ 16,906 $ 20,446 $ 29,040 $ 26,665 $ 24,194 $ 11,801 $ 12,236 Amortization of debt expense ................... 510 695 1,079 1,216 1,737 766 1,072 Estimated interest factor for rentals (a)............ 7,442 6,100 7,529 8,041 8,559 5,125 5,751 ---------- ---------- ---------- ---------- -------- --------- ---------- $ 24,858 $ 27,241 $ 37,648 $ 35,922 $ 34,490 $ 17,692 $ 19,059 ========== ========== ========== ========== ======== ========= ========== Ratio of earnings to fixed charges ........................ 1.2 1.6 1.7 1.1 (b) (b) (b) PRO FORMA -------------------------------------------------- FISCAL YEAR ENDED FISCAL SIX MONTHS ENDED DECEMBER 29, 2002 JUNE 29, 2003 ----------------------- -------------------------- Earnings before equity in affiliates, income taxes and fixed charges: Income from continuing operations before income taxes .............. $ (32,177) $ (6,558) Add interest on indebtedness .............. 30,148 15,066 Add amortization of debt expense ................... 2,618 1,348 Add estimated interest factor for rentals (a)..... 8,559 5,751 ---------- ---------- Earnings before equity in affiliates, income taxes and fixed charges.... $ 9,148 $ 15,607 ========== ========== Fixed charges: Interest on indebtedness..... $ 30,148 $ 15,066 Amortization of debt expense ................... 2,618 1,348 Estimated interest factor for rentals (a)............ 8,559 5,751 ---------- ---------- $ 41,325 $ 22,165 ========== ========== Ratio of earnings to fixed charges ........................ (c) (c)
(a) One third of all rent expense is deemed representative of the interest factor. (b) Earnings were insufficient to cover fixed charges by $25.3 million for the fiscal year ended December 29, 2002, $0.3 million for the six months ended June 30, 2002 and $3.5 million for the fiscal six months ended June 29, 2003. (c) On a proforma basis, earnings were insufficient to cover fixed charges by $32.2 million for the fiscal year ended December 29, 2002 and by $6.6 million for the fiscal six months ended June 29, 2003.