EX-12 2 y88534exv12.htm EX-12 exv12
Exhibit 12
Colt Defense LLC
Computation of Ratio of Earnings to Combined Fixed Charges
                                                         
                                            For the Nine Months Ended  
    For the Years Ended December 31,     October 4,     October 3,  
(Dollars in thousands)   2005     2006     2007     2008     2009     2009     2010  
 
                                                       
Earnings (loss)(a)
  $ (10,704 )   $ 25,387     $ (5,159 )   $ 45,375     $ 31,718     $ 34,447     $ (5,709 )
Plus:
                                                       
Interest included in expense
    4,669       6,160       14,105       19,281       18,847       13,532       18,854  
 
                                                       
Interest Portion of rental expense (b)
    289       973       814       713       656       381       294  
 
                                                       
Amortization of deferred financing costs
    349       172       649       1,168       1,325       917       1,373  
 
                                         
 
                                                       
Adjusted “earnings”
  $ (5,397 )   $ 32,692     $ 10,409     $ 66,537     $ 52,546     $ 49,277     $ 14,812  
 
                                         
 
                                                       
Fixed Charges:
                                                       
Interest included in expense
  $ 4,669     $ 6,160     $ 14,105     $ 19,281     $ 18,847     $ 13,532     $ 18,854  
 
                                                       
Interest Portion of rental expense (b)
    289       973       814       713       656       381       294  
 
                                                       
Amortization of deferred financing costs
    349       172       649       1,168       1,325       917       1,373  
 
                                         
Total fixed charges
  $ 5,307     $ 7,305     $ 15,568     $ 21,162     $ 20,828     $ 14,830     $ 20,521  
 
                                         
 
                                                       
Ratio of earnings to fixed charges (c)
    (1.02)x       4.48x       0.67x       3.14x       2.52x       3.32x       0.72x  
 
                                         
 
(a)   Earnings (loss) before income taxes and non-controlling interests
 
(b)   Considered to be representative of interest factor in rental expense
 
(c)   In accordance with Item 503 of SEC Regulation S-K, we are required to disclose the amount of earnings needed to achieve a one-to-one ratio of earnings to fixed charges.
    As of December 31, 2005, this amount was $10,704
 
    As of December 31, 2007, this amount was $5,159
 
    For the nine months ended October 3, 2010, this amount was $5,709