EX-12 3 dex12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

Exhibit (12)

CLEARWATER PAPER CORPORATION

Computation of Ratio of Earnings to Fixed Charges

(In thousands)

 

      2008    2007    2006    2005     2004  

Earnings (loss) from operations before taxes on income

    $15,337    $39,407    $33,263    $(14,840 )   $(8,798 )

Add:

              

 Interest expense

    13,147    13,000    13,000    12,589     12,500  

 Rental expense factor1

    4,501    4,489    5,156    4,654     4,552  

 Discount and loan expense amortization

    46    —    —    —     —  

Earnings available for fixed charges

    $33,031    $56,896    $51,419    $2,403     $8,254  

Fixed charges:

              

 Interest expense

    $13,147    $13,000    $13,000    $12,589     $12,500  

 Rental expense factor 1

    4,501    4,489    5,156    4,654     4,552  

 Discount and loan expense amortization

    46    —    —    —     —  

Total fixed charges

    $17,694    $17,489    $18,156    $17,243     $17,052  

Ratio of earnings to fixed charges

    1.9    3.3    2.8    0.1     0.5  

 

1

“Rental expense factor” is the portion of rental expense estimated to be representative of the interest factor within rental expense.

The dollar amount of deficiency in earnings available for fixed charges for a one-to-one ratio for 2005 and 2004 was $14,840 and $8,798, respectively.

Certain 2004-2007 amounts have been reclassified to conform to the 2008 presentation.