EX-12.1 6 y63661exv12w1.txt COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES EXHIBIT 12.1 STEEL DYNAMICS, INC. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (DOLLARS IN THOUSANDS)
SIX MONTHS ENDED JUNE 30, -------- 1997 1998 1999 2000 2001 2002 ---- ---- ---- ---- ---- ---- Interest expense including amortization of debt issuance costs ............................. $ 9,197 $16,938 $ 22,919 $ 21,038 $ 21,015 $ 10,198 Capitalized interest ................ 8,093 5,878 13,196 17,477 13,993 10,158 ------- ------- -------- -------- -------- -------- Fixed charges (a) .......... 17,290 22,816 36,115 38,515 35,008 20,356 Income before taxes and extraordinary items ............................ 59,371 52,626 65,279 84,485 5,113 34,233 Amortization of capitalized interest 848 1,138 1,365 1,501 1,597 1,176 Less capitalized interest............ (8,093) (5,878) (13,196) (17,477) (13,993) (10,158) ------- ------- -------- -------- -------- -------- Adjusted earnings (b) ...... $69,416 $70,702 $ 89,563 $107,024 $ 27,725 $ 45,607 ======= ======= ======== ======== ======== ======== Ratio (b)/(a) ....................... 4.01x 3.10x 2.48x 2.78x 0.79x 2.24x ======= ======= ======== ======== ======== ========
For purposes of calculating our ratio of earnings to fixed charges, earnings consist of earnings from continuing operations before income taxes, adjusted for the portion of fixed charges deducted from the earnings, plus amortization of capitalized interest. Fixed charges consist of interest on all indebtedness, including capitalized interest, and amortization of debt issuance costs. In 2001, our earnings were insufficient to cover our fixed charges by $7.3 million.