Exhibit 12.01
CARAUSTAR INDUSTRIES, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(IN THOUSANDS, EXCEPT RATIOS)
| 2002 | 2003 | 2004 | 2005 | 2006 | ||||||||||||||||
| EARNINGS: |
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| Income (Loss) from continuing operations before income from equity investees, income taxes and minority interest |
$ | (34,754 | ) | $ | (50,459 | ) | $ | (30,189 | ) | $ | (162,092 | ) | $ | 73,289 | ||||||
| Distributed income of equity investees |
10,655 | 6,150 | 20,250 | 39,500 | 8,000 | |||||||||||||||
| Fixed charges |
47,245 | 54,288 | 51,912 | 51,481 | 33,808 | |||||||||||||||
| Earnings |
$ | 23,146 | $ | 9,979 | $ | 41,973 | $ | (71,111 | ) | $ | 115,097 | |||||||||
| FIXED CHARGES: |
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| Interest expense |
$ | 39,938 | $ | 47,227 | $ | 46,214 | $ | 46,768 | $ | 29,184 | ||||||||||
| Amortization of debt issuance costs |
1,534 | (214 | ) | (876 | ) | (997 | ) | (1,161 | ) | |||||||||||
| Estimate of the interest cost within rental expense |
5,773 | 7,275 | 6,574 | 5,710 | 5,083 | |||||||||||||||
| Capitalized interest expense |
— | — | — | — | 702 | |||||||||||||||
| Fixed charges |
$ | 47,245 | $ | 54,288 | $ | 51,912 | $ | 51,481 | $ | 33,808 | ||||||||||
| Ratio of earnings to fixed charges (1) |
$ | .49 | .18 | .81 | N/A | 3.4 | ||||||||||||||
| (1) | The 2005, 2004, 2003 and 2002 earnings were inadequate to cover fixed charges. The cover deficiency was $123.0 million, $9.9 million, $44.3 million, and $24.1 million, respectively. |