EX-12.1 7 y84184exv12w1.txt STATEMENT RE: COMPUTATION OF RATIOS OF EARNINGS . . . EXHIBIT 12.1 STEEL DYNAMICS, INC. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (DOLLARS IN THOUSANDS)
NINE MONTHS ENDED SEPTEMBER 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 $ 21,801 Capitalized interest ...................... 8,093 5,878 13,196 17,477 13,993 10,699 --------- --------- --------- --------- --------- --------- Fixed charges (a) ................. 17,290 22,816 36,115 38,515 35,008 32,500 Income before taxes and extraordinary items 59,371 52,626 65,279 84,485 5,113 80,842 Plus amortization of capitalized interest . 848 1,138 1,365 1,501 1,597 2,075 Less capitalized interest ................. (8,093) (5,878) (13,196) (17,477) (13,993) (10,699) --------- --------- --------- --------- --------- --------- Adjusted earnings (b) ............. $ 69,416 $ 70,702 $ 89,563 $ 107,024 $ 27,725 $ 104,718 ========= ========= ========= ========= ========= ========= Ratio (b) / (a) ........................... 4.01x 3.10x 2.48x 2.78x 0.79x 3.22x ========= ========= ========= ========= ========= =========
For purposes of calculating our ratio of earnings to fixed charges, earnings consist of earnings from continuing operations before income taxes and extraordinary items, 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 issuances costs, excluding amortization of debt issuance costs classified as extraordinary. In 2001, our earnings were insufficient to cover our fixed charges by $7.3 million.