Exhibit 12.1
THE HILLMAN COMPANIES, INC.
Computation of Ratio of Income to Fixed Charges
(Dollars in thousands)
| One Month Ended 6/30/2010 |
Five Months Ended 5/28/2010 |
Six Months Ended 6/30/2009 |
2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||||||||
| Income before Income Taxes |
$ | (7,330 | ) | $ | (27,673 | ) | $ | 3,678 | $ | 9,059 | $ | 3,858 | $ | (5,521 | ) | $ | (5,604 | ) | $ | 482 | ||||||||
| Add fixed charges: |
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| Interest expense |
4,670 | 19,069 | 19,531 | 40,653 | 44,245 | 48,056 | 47,302 | 41,555 | ||||||||||||||||||||
| Amortization of debt expense |
— | — | 1,011 | 1,011 | 2,283 | 2,350 | 2,806 | 1,632 | ||||||||||||||||||||
| Interest portion of rent expense |
247 | 1,206 | 1,521 | 2,905 | 3,162 | 3,092 | 3,034 | 2,840 | ||||||||||||||||||||
| Adjusted income |
$ | (2,413 | ) | $ | (7,398 | ) | $ | 25,741 | $ | 53,628 | $ | 53,548 | $ | 47,977 | $ | 47,538 | $ | 46,509 | ||||||||||
| Fixed charges: |
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| Interest expense |
4,670 | 19,069 | 19,531 | 40,653 | 44,245 | 48,056 | 47,302 | 41,555 | ||||||||||||||||||||
| Amortization of debt expense |
— | — | 1,011 | 1,011 | 2,283 | 2,350 | 2,806 | 1,632 | ||||||||||||||||||||
| Interest portion of rent expense |
247 | 1,206 | 1,521 | 2,905 | 3,162 | 3,092 | 3,034 | 2,840 | ||||||||||||||||||||
| Fixed Charges |
$ | 4,917 | $ | 20,275 | $ | 22,063 | $ | 44,569 | $ | 49,690 | $ | 53,498 | $ | 53,142 | $ | 46,027 | ||||||||||||
| Ratio of earnings to Fixed Charges (1) |
— | — | 1.17 | 1.20 | 1.08 | — | — | 1.01 | ||||||||||||||||||||
(1) The ratio of earnings to fixed charges has been computed by adding income before income taxes and fixed charges to derive adjusted income, and dividing adjusted income by fixed charges. Fixed charges consist of interest expense on debt (including the amortization of debt expense) and one-third (the proportion deemed representative of the interest portion) of rent expense.
For the one month ending June 30, 2010, the five months ending May 28, 2010, and the years ending December 31, 2006 and 2007, the ratio of earnings to fixed charges indicates earnings are inadequate to cover fixed charges as defined above. The deficiency totals are $7,330, $27,673, $5,604 and $5,521 respectively.