EX-12.1 14 d02840exv12w1.txt COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES EXHIBIT 12.1 LENNOX INTERNATIONAL INC. AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (UNAUDITED)
FOR THE NINE MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31, SEPTEMBER 30, ----------------------------------------------------- -------------- (In thousands, except ratio) 1997 1998 1999 2000 2001 2002 ---------------------------- -------- -------- -------- -------- -------- -------------- EARNINGS AS DEFINED: Income (loss) before income taxes, cumulative effect of accounting change and minority interest $(45,709) $ 88,817 $123,138 $100,576 $(44,271) $ 85,101 Fixed charges 22,777 30,225 48,688 81,772 69,188 43,145 -------- -------- -------- -------- -------- -------------- Earnings as defined $(22,932) $119,042 $171,826 $182,348 $ 24,917 $ 128,246 -------- -------- -------- -------- -------- -------------- FIXED CHARGES AS DEFINED: Interest expense $ 14,928 $ 20,692 $ 35,693 $ 59,074 $ 45,046 $ 26,615 Amortization of deferred finance charges 116 133 195 265 842 2,280 Portion of rental expense representative of the interest factor 7,733 9,400 12,800 22,433 23,300 14,250 -------- -------- -------- -------- -------- -------------- Fixed charges as defined $ 22,777 $ 30,225 $ 48,688 $ 81,772 $ 69,188 $ 43,145 -------- -------- -------- -------- -------- -------------- RATIO OF EARNINGS TO FIXED CHARGES(1)(2) -- 3.94 3.53 2.23 -- 2.97 -------- -------- -------- -------- -------- --------------
(1) Due to restructuring charges in 2001 of $73.2 million of which $7.8 million was included in costs of goods sold, additional earnings of $44.3 million would have been necessary to cover fixed charges. (2) Due to product inspection charges in 1997 of $140.0 million, additional earnings of $45.7 million would have been necessary to cover fixed charges.