EX-12.1 5 l02121_x121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

Exhibit 12.1

LAWSON PRODUCTS, INC.

STATEMENT REGARDING COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

	Year Ended December 31,
	2014⁽¹⁾			2013⁽²⁾			2012⁽³⁾			2011⁽⁴⁾			2010⁽⁵⁾
Computation of Earnings (Loss):
Pre-Tax Loss on Continuing Operations	$	(5,834,000	)	$	(7,122,000	)	$	(46,098,000	)	$	(6,356,000	)	$	16,179,000
Fixed Charges	1,299,000			1,752,000			1,528,000			920,000			815,000
Total Earnings (Loss)	$	(4,535,000	)	$	(5,370,000	)	$	(44,570,000	)	$	(5,436,000	)	$	16,994,000

Computation of Fixed Charges:
Credit Line Interest	$	416,000		$	722,000		$	551,000		$	604,000		$	292,000
Financing Lease Interest	341,000			363,000			203,000			—			—
Capital Lease Interest	15,000			12,000			21,000			77,000			99,000
Estimate of Interest Within Operating Leases⁽⁶⁾	527,000			655,000			753,000			239,000			424,000
Total Fixed Charges	$	1,299,000		$	1,752,000		$	1,528,000		$	920,000		$	815,000

Earnings to Fixed Charges	(na)			(na)			(na)			(na)			20.9x

Coverage Deficit on Fixed Charges	$	4,535,000		$	5,370,000		$	44,570,000		$	5,436,000		$	—

	(1)	The 2014 loss includes a $3.0 million impairment charge related to the Reno, Nevada, distribution center.

	(2)	The 2013 loss includes a $2.9 million charge related to the sub-lease of a portion of the leased headquarters and a $0.4 million benefit from the resolution of an employment tax matter.

(3)

The 2012 loss includes a goodwill impairment charge of $28.3 million, a $3.9 million charge related to discontinuing certain products and a $3.7 million gain on the sale of assets.

(4)

The 2011 loss includes a $1.2 million provision for the estimated cost of settling an employment tax matter.

(5)

The 2010 earnings include a $4.1 million benefit from legal settlements and a $1.7 million gain on sale of assets.

(6)

Estimate of interest within operating leases is calculated under the assumption that 30% of operating lease expense is representative of interest costs.