EXHIBIT 12.01
CARAUSTAR INDUSTRIES, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(IN THOUSANDS)
| 2000 |
2001 |
2002 |
2003 |
2004 |
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| EARNINGS: |
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| Income from continuing operations before income taxes, minority interest, reversal of loss on discontinued operations and cumulative effect of accounting changes |
$ | 13,829 | $ | (22,295 | ) | $ | (27,778 | ) | $ | (42,330 | ) | $ | (5,329 | ) | ||||||
| Fixed charges |
41,776 | 49,997 | 47,245 | 54,288 | 51,912 | |||||||||||||||
| Less capitalized interest expense |
(852 | ) | 0 | 0 | 0 | 0 | ||||||||||||||
| Earnings |
$ | 54,753 | $ | 27,702 | $ | 19,467 | $ | 11,958 | $ | 46,583 | ||||||||||
| FIXED CHARGES: |
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| Interest expense |
$ | 35,730 | $ | 43,492 | $ | 39,938 | $ | 47,227 | $ | 46,214 | ||||||||||
| Amortization of debt issuance costs (premiums) |
737 | 1,566 | 1,534 | (214 | ) | (876 | ) | |||||||||||||
| Estimate of the interest cost within rental expense |
4,457 | 4,939 | 5,773 | 7,275 | 6,574 | |||||||||||||||
| Capitalized interest expense |
852 | 0 | 0 | 0 | 0 | |||||||||||||||
| Fixed charges |
$ | 41,776 | $ | 49,997 | $ | 47,245 | $ | 54,288 | $ | 51,912 | ||||||||||
| Ratio of earnings to fixed charges |
1.31 | 0.55 | (1) | 0.41 | (1) | 0.22 | (1) | 0.90 | (1) | |||||||||||
| (1) | The 2004, 2003, 2002 and 2001 earnings were inadequate to cover fixed charges. The cover deficiency was $5.3 million, $ 42.3 million, $27.8 million and $22.3 million for 2004, 2003, 2002 and 2001, respectively. |