EX-12.1 3 dex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

Exhibit 12.1

ASSOCIATED MATERIALS, LLC

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(in thousands, except for ratios)

 

     Nine
Months Ended

October 3, 2009
   Fiscal Years Ended  
        January 3,
2009
   December 29,
2007
   December 30,
2006
   December 31,
2005
   January 1,
2005
 

Earnings:

                 

Income (loss) before income taxes

   $ 31,199    $ 34,925    $ 68,500    $ 63,393    $ 32,172    $ (12,168

Plus: Fixed charges

     25,405      35,467      38,743      42,733      40,292      34,234   
                                           

Total earnings

   $ 56,604    $ 70,392    $ 107,243    $ 106,126    $ 72,464    $ 22,066   

Fixed charges:

                 

Interest expense

   $ 16,581    $ 24,307    $ 27,943    $ 32,413    $ 31,922    $ 27,784   

Plus: Imputed interest on operating leases (a)

     8,824      11,160      10,800      10,320      8,370      6,450   
                                           

Total fixed charges

   $ 25,405    $ 35,467    $ 38,743    $ 42,733    $ 40,292    $ 34,234   

Ratio of earnings to fixed charges

     2.23      1.98      2.77      2.48      1.80      (b)   
                                           

Lease rental expense

   $ 29,414    $ 37,200    $ 36,000    $ 34,400    $ 27,900    $ 21,500   

 

(a) Imputed interest on operating leases is estimated to be 30% of the fiscal year lease rental expense.
(b) For the year ended January 1, 2005, earnings were inadequate to cover fixed charges, and the ratio of earnings to fixed charges therefore has not been presented for that period. The coverage deficiency necessary for the ratio of earnings to fixed charges to equal 1.00x (one-to-one coverage) was $12.2 million for the year ended January 1, 2005.