EX-12.1 4 exhibit_12-1.htm STATEMENT RE: COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES exhibit_12-1.htm
 
EXHIBIT 12.1

CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES



                     
                     
   
American Achievement Group Holding Corp.
  
($ in thousands)
  
Fiscal Year Ended     
  
   
August 25, 2007 
  
August 26, 2006 
  
 August 27, 2005
  
Net income (loss) before income taxes
  
$
               (47,978
 ) 
$
             3,192
  
$
                  3,550
  
                     
Fixed charges: (1) Interest charges
    
                 59,790
    
           39,799
    
                31,472
  
Interest portion of lease expense
    
                      583
    
                683
    
                     829
  
Total fixed charges
    
                 60,373
    
           40,482
    
                32,301
  
Net income from operations before income taxes and fixed charges
$
                 12,395
  
$
           43,674
  
$
                35,851
  
                     
Ratio of earnings to fixed charges (2)
    
                         -
    
1.08
x
  
1.11
x
                     
   
AAC Group Holding Corp.   
  
   
Fiscal Year Ended     
  
   
August 25, 2007 
  
August 26, 2006 
  
 August 27, 2005
  
Net income (loss) before income taxes
  
$
               (22,225
 ) 
$
             8,277
  
$
                  3,550
  
                     
Fixed charges: (1) Interest charges
    
                 34,037
    
           34,714
    
                31,472
  
Interest portion of lease expense
    
                      583
    
                683
    
                     829
  
Total fixed charges
    
                 34,620
    
           35,397
    
                32,301
  
Net income from operations before income taxes and fixed charges
$
                 12,395
  
$
           43,674
  
$
                35,851
  
                     
Ratio of earnings to fixed charges (2)
    
                         -
    
1.23
x
  
1.11
x
                     
   
American Achievement Corporation   
  
   
Fiscal Year Ended     
  
   
August 25, 2007 
  
August 26, 2006 
  
 August 27, 2005
  
Net income (loss) before income taxes
  
$
               (10,767
 ) 
$
           19,234
  
$
                11,324
  
                     
Fixed charges: (1) Interest charges
    
                 22,579
    
           23,757
    
                23,698
  
Interest portion of lease expense
    
                      583
    
                683
    
                     829
  
Total fixed charges
    
                 23,162
    
           24,440
    
                24,527
  
Net income from operations before income taxes and fixed charges
$
                 12,395
  
$
           43,674
  
$
                35,851
  
                     
Ratio of earnings to fixed charges:(2)
    
                         -
    
1.79
x
  
1.46
x
                     
     
(1)
 
During the periods presented the Company had no preferred stock outstanding that required a cash payment. Therefore, the ratio of earnings to combined fixed charges and preferred dividends was the same as the ratio of earnings to fixed charges for each of the periods presented.
 
    
(2)
 
For purposes of computing this ratio, earnings consist of income (loss) before taxes on income and fixed charges. Fixed charges consist of interest expense, amortization of deferred debt issuance costs and the portion of rental expense that includes an interest factor.  In fiscal year 2007 earnings before fixed charges were insufficient to cover fixed charges by approximately $48.0 million for Parent Holdings, $22.2 million for Intermediate Holdings and $10.8 million for AAC.