EX-12.1 11 dex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of ratio of earnings to fixed charges

Exhibit 12.1

 

Computation of ratio of earnings to fixed charges

 

     Predecessor
   Successor
       
     Fiscal Year Ended January 31,
    For the
Period
February 1,
2003 to
December 18,
    For the
Period
December 19,
2003 to
January 31,
     Combined
Twelve
Months
Ended
January 31,
    Pro Forma
Twelve
Months
Ended
January 31,
      Three
Months
Ended
April 30,
    

Pro Forma

Three
Months
Ended
April 30,

  
     2000
    2001
    2002
     2003
    2003
    2004
     2004
    2004
      2004
     2003
  
     ($ in millions, except ratios)               
Ratio of earnings to fixed charges                                                                             

Income (loss) before income taxes

    $ 33.6    $ 109.1    $ 90.3     $ 164.9    $ 45.5    $ (23.4 )   $ 22.1    $ (12.3 )    $ (46.5 )   $ (44.7 )

Add Fixed charges

      9.6      6.2      12.1       14.0      11.9      7.5       19.4      59.8        15.2       15.2  
    
  
  
 
  
  
 
  
  
 

Total earnings (loss)

    $ 43.2    $ 115.3    $ 102.4     $ 178.9    $ 57.4    $ (15.9 )     41.5    $ 47.5        (31.3 )     (29.5 )
    
  
  
 
  
  
 
  
  
 

Fixed charges

                                                                             

Interest expense

    $ 4.8    $ 2.1    $ 5.9     $ 7.4    $ 6.1    $ 5.6     $ 11.7    $ 43.4      $ 11.4     $ 11.4  

Accretion in carrying value of redeemable preferred shares

      —        —        —         —        —        0.5       0.5      4.0        1.0       1.0  

Interest expense on operating leases

      4.8      4.1      6.2       6.6      5.8      0.6       6.4      6.4        1.2       1.2  

Amortization of financing costs

      —        —        —         —        —        0.8       0.8      6.0        1.6       1.6  
    
  
  
 
  
  
 
  
  
 

Total fixed charges

    $ 9.6    $ 6.2    $ 12.1     $ 14.0    $ 11.9    $ 7.5     $ 19.4    $ 59.8      $ 15.2     $ 15.2  
    
  
  
 
  
  
 
  
  
 

Ratio(a)

      4.5x      18.6x      8.5x       12.8x      4.8x      —         2.1x      —          —         —    
    
  
  
 
  
  
 
  
  
 
Ratio of earnings to fixed charges (US GAAP)                                                                             

Earnings

                                                                             

Income (loss) before income taxes (Canadian GAAP)

                  $ 90.3     $ 164.9    $ 45.5    $ (23.4 )   $ 22.1    $ (12.3 )    $ (46.5 )   $ (44.7 )

US GAAP adjustments before income taxes

                    (19.4 )     26.3      10.9      (8.5 )     2.4      2.4        2.1       2.1  
                  
 
  
  
 
  
  
 

US GAAP income (loss) before income taxes

                    70.9       191.2      56.4      (31.9 )     24.5      (9.9 )      (44.4 )     (42.6 )

Fixed charges

                    12.1       14.0      11.8      7.0       18.8      55.7        14.2       14.2  
                  
 
  
  
 
  
  
 

Total earnings (loss)

                  $ 83.0     $ 205.2    $ 68.2    $ (24.9 )   $ 43.3    $ 45.8      $ (30.2 )   $ (28.4 )
                  
 
  
  
 
  
  
 

Fixed charges

                                                                             

Interest expense

                  $ 6.0     $ 7.7    $ 6.3    $ 5.6     $ 11.9    $ 43.6      $ 11.4     $ 11.4  

Interest expense on operating leases

                    6.1       6.3      5.5      0.6       6.1      6.1        1.2       1.2  

Amortization of financing costs

                    —         —        —        0.8       0.8      6.0        1.6       1.6  
                  
 
  
  
 
  
  
 

Fixed charges

                  $ 12.1     $ 14.0    $ 11.8    $ 7.0     $ 18.8    $ 55.7      $ 14.2     $ 14.2  
                  
 
  
  
 
  
  
 

Ratio(a)

                    6.9x       14.7x      5.8x      —         2.3x      —          —         —    
                  
 
  
  
 
  
  
 
(a)   For purposes of calculating the ratio of earnings to fixed charges, earnings represent income (loss) before income tax expense plus fixed charges. Fixed charges consist of total interest expense, amortization of deferred financing costs, accretion in carrying value of preferred shares and a one-third portion of operating lease expenses that management believes is representative of the interest component of rent pursuant to our operating leases. For U.S. GAAP purposes, the accretion in carrying value of redeemable preferred shares in the amount of $0.5 million, for the period from December 19, 2003 to January 31, 2004 and $1.0 million for the three-month period ended April 30, 2004 and pro forma three-month period ended April 30, 2004, are not included in fixed charges. The ratio (under Canadian GAAP) was not presented for the period of December 19, 2003 to January 31, 2004 and pro forma twelve months ended January 31, 2004 as earnings were insufficient to cover fixed charges by $23.4 million and $12.3 million, respectively. The ratio (under Canadian GAAP) was not presented for the three-month period ended April 30, 2004 and pro forma three-month period ended April 30, 2004 as earnings were insufficient to cover fixed charges by $16.5 million and $44.7 million, respectively. The ratio (under U.S. GAAP) was not presented for the period of December 19, 2003 to January 31, 2004 and pro forma twelve months ended January 31, 2004, as earnings were insufficient to cover fixed charges by $31.9 million and $9.9 million, respectively. The ratio (under US GAAP) was not presented for the three month period ended April 30, 2004 and pro forma three-month period ended April 30, 2004 as earnings were insufficient to cover fixed charges by $44.4 million and $42.6 million, respectively. The ratio for the pro forma twelve months ended January 31, 2004 is a supplemental pro forma ratio to give effect to the Transactions as reflected in the Unaudited Pro Forma Consolidated Statement of Income included elsewhere in this prospectus.