EX-12.1 4 dex121.htm RATIO OF EARNINGS TO FIXED CHARGES Ratio of Earnings to Fixed Charges

EXHIBIT 12.1

 

ChipPAC, Inc.

 

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Amounts in thousands of dollars)

 

     Years Ended December 31
    

Nine Months
Ended

September 30,

2003

  
     1998
    1999
     2000(a)
    2001
     2002
    

Pre-tax income (loss) from continuing operations

    $ 52,867    $ (5,370 )   $ 15,670    $ (91,158 )   $ (26,855 )   $ (30,545 )
    
  
 
  
 
 

Fixed charges:

                                               

Interest expense

      13,340      21,241       39,432      37,214       31,986       22,804  

Rentals (33%)

      2,533      1,633       1,767      2,107       1,930       1,748  

Total fixed charges

    $ 15,873    $ 22,874     $ 41,199    $ 39,321     $ 33,916     $ 24,552  
    
  
 
  
 
 

Pre-tax income (loss) from continuing operations plus fixed charges

    $ 68,740    $ 17,504     $ 56,869    $ (51,837 )   $ 7,061     $ (5,993 )
    
  
 
  
 
 

Ratio of earnings to fixed charges

      4.3      —         1.4      —         —         —    

Ratio coverage less than 1:1. The registrant must generate additional earnings of as follows to achieve a coverage ratio of 1:1

      —        5,370       —        91,158       26,855       30,545  
(a)   Included in earnings for 2000 were nonrecurring expenses of $8.0 million before income taxes relating to the termination of management advisory agreements as disclosed in the Notes to our consolidated financial statements. If such sale had not occurred, the ratio of earnings to fixed charges would have been 1.6.