EX-12 5 ex-12.txt EXHIBIT 12 EXHIBIT 12 CHECKPOINT SYSTEMS, INC. RATIO OF EARNINGS TO FIXED CHARGES (UNAUDITED)
(amounts in thousands) 2004 2003 2002 2001 2000 ------------------------------------------------------------------------------------------------------------- Interest expense (1) $ 8,445 $ 13,053 $ 18,071 $ 23,549 $ 25,314 Interest factor in rental expense 6,871 7,196 5,136 4,400 4,583 ------------------------------------------------------------------------------------------------------------- (a) Fixed charges, as defined $ 15,316 $ 20,249 $ 23,207 $ 27,949 $ 29,897 ------------------------------------------------------------------------------------------------------------- (Loss) earnings before income taxes and minority interest plus income from an equity investee $ (13,085) $ 44,416 $ 37,681 $ 13,716 $ 5,492 Fixed charges 15,316 20,249 23,207 27,949 29,897 ------------------------------------------------------------------------------------------------------------- (b) Earnings, as defined $ 2,231 $ 64,665 $ 60,888 $ 41,665 $ 35,389 ------------------------------------------------------------------------------------------------------------- (c) Ratio of earnings to fixed charges (b divided by a) -- 3.2x 2.6x 1.5x 1.2x =============================================================================================================
(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 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). Earnings, as defined, were not sufficient to cover fixed charges by approximately $13 million for fiscal year ended December 26, 2004.