EX-12.1 3 k79382a1exv12w1.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 NINE MONTHS FISCAL YEAR ENDED ENDED ------------------------------------------------------------------- ----------------------------- January 3, January 2, December 31, December 30, December 29, September 29 September 28, 1999 2000 2000 2001 2002 2002 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) $ (488) $ (13,508) Add interest on indebtedness .............. 16,906 20,446 29,040 26,665 24,194 18,127 17,453 Add amortization of debt expense ................... 510 695 1,079 1,216 1,737 1,332 5,260 Add estimated interest factor for rentals (a)..... 7,442 6,100 7,529 8,041 8,559 7,729 8,442 ---------- ---------- ---------- ---------- -------- --------- ---------- Earnings before equity in affiliates, income taxes and fixed charges.... $ 30,697 $ 44,430 $ 64,645 $ 40,080 $ 9,148 $ 26,700 $ 17,647 ========== ========== ========== ========== ======== ========= ========== Fixed charges: Interest on indebtedness..... $ 16,906 $ 20,446 $ 29,040 $ 26,665 $ 24,194 $ 18,127 $ 17,453 Amortization of debt expense ................... 510 695 1,079 1,216 1,737 1,332 5,260 Estimated interest factor for rentals (a)............ 7,442 6,100 7,529 8,041 8,559 7,729 8,442 ---------- ---------- ---------- ---------- -------- --------- ---------- $ 24,858 $ 27,241 $ 37,648 $ 35,922 $ 34,490 $ 27,188 $ 31,155 ========== ========== ========== ========== ======== ========= ========== Ratio of earnings to fixed charges ........................ 1.2 1.6 1.7 1.1 (b) (b) (b)
(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, $0.4 million for the nine months ended September 29, 2002 and $13.5 million for the fiscal nine months ended September 28, 2003.