EX-12 69 a15-1108_1ex12.htm EX-12

Exhibit 12

 

Quad/Graphics, Inc.

Ratio of Earnings to Fixed Charges

(in millions, except ratios)

 

 

 

Nine Months Ended
September 30,

 

Year Ended December 31,

 

 

 

2014

 

2013

 

2013

 

2012

 

2011

 

2010

 

2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) from continuing operations before income taxes and equity in earnings (loss) of unconsolidated entities

 

$

(10.4

)

$

(25.8

)

$

56.7

 

$

22.5

 

$

14.9

 

$

(31.3

)

$

48.3

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distributed income of unconsolidated entities

 

—

 

5.0

 

5.0

 

0.5

 

7.5

 

4.7

 

6.0

 

Fixed charges (see below)

 

80.2

 

74.5

 

99.3

 

97.0

 

122.7

 

105.5

 

67.1

 

Amortization of capitalized interest

 

1.0

 

1.1

 

1.4

 

1.6

 

1.7

 

1.7

 

1.8

 

Subtract:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest capitalized

 

(0.2

)

(0.5

)

(0.5

)

(0.2

)

(0.4

)

(0.2

)

(0.3

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total earnings

 

$

70.6

 

$

54.3

 

$

161.9

 

$

121.4

 

$

146.4

 

$

80.4

 

$

122.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

$

69.5

 

$

64.1

 

$

85.5

 

$

84.0

 

$

108.0

 

$

92.9

 

$

64.1

 

Interest capitalized

 

0.2

 

0.5

 

0.5

 

0.2

 

0.4

 

0.2

 

0.3

 

Amortization of debt issuance costs and original issue discount

 

3.2

 

3.1

 

4.1

 

4.5

 

8.6

 

5.9

 

—

 

Estimate of interest included within rental expense (a)

 

7.3

 

6.8

 

9.2

 

8.3

 

5.7

 

6.5

 

2.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total fixed charges

 

$

80.2

 

$

74.5

 

$

99.3

 

$

97.0

 

$

122.7

 

$

105.5

 

$

67.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges (b)

 

0.9

 

0.7

 

1.6

 

1.3

 

1.2

 

0.8

 

1.8

 

 

(a)         Interest portion of rental expense is estimated to equal 25% of such expense, which is considered a reasonable approximation of the interest factor.

 

(b)         Earnings were insufficient to cover fixed charges for the nine months ended September 30, 2014 and 2013 by $9.6 million and $20.2 million, respectively, and for the year ended December 31, 2010 by $25.1 million.  Accordingly, the ratio of earnings to fixed charges was less than 1:1.