EX-12 4 w50406exv12.txt RATIO OF EARNINGS TO FIXED CHARGES . . . EXHIBIT 12 CHECKPOINT SYSTEMS, INC. RATIO OF EARNINGS TO FIXED CHARGES (UNAUDITED)
(AMOUNTS IN THOUSANDS) 2007 2006 2005 2004 2003 ----------------------------------------------------------------------------------------------------- Interest expense (1).......................... $ 2,534 $ 2,307 $ 4,192 $ 8,467 $13,067 Interest factor in rental expense............. 8,906 4,898 5,673 6,871 7,196 ----------------------------------------------------------------------------------------------------- (a) Fixed charges, as defined................. $11,440 $ 7,205 $ 9,865 $15,338 $20,263 ----------------------------------------------------------------------------------------------------- Earnings (loss) from continuing operations before income taxes and minority interest.. $70,576 $41,975 $40,127 $21,031 $29,443 Fixed charges................................. 11,440 7,205 9,865 15,338 20,263 ----------------------------------------------------------------------------------------------------- (b) Earnings, as defined...................... $82,016 $49,180 $49,992 $36,369 $49,706 ----------------------------------------------------------------------------------------------------- (c) Ratio of earnings to fixed charges (b / a) 7.2x 6.8x 5.1x 2.4x 2.5x =====================================================================================================
(1) Includes amortization of finance costs. The ratio of earnings to fixed charges is computed by dividing earnings by fixed charges. "Earnings" consist of earnings from continuing operations before income taxes and minority interest plus income from an equity method investee plus fixed charges. "Fixed Charges" consist of interest expense plus one-third of rental expense (which amount is considered representative of the interest factor in rental expense).