EX-12.1 2 d383510dex121.htm EX-12.1 EX-12.1

Exhibit 12.1

A. SCHULMAN, INC.

Calculation of Ratio of Earnings to Fixed Charges

(Amounts in Thousands, Except Ratios)

 

    

Three Months

Ended

November 30,

    Twelve months ended August 31,  
     2016     2016     2015     2014     2013      2012  

Pretax income from continuing operations before adjustment for income or loss from equity investees

   $ 6,571      $ (365,945   $ 28,446      $ 72,422      $ 53,732       $ 66,827   

Fixed charges (from below)

     15,074        62,015        47,396        14,036        11,890         11,818   

Undistributed income (loss) from equity investees

     (68     (560     (16     (90     —           —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Earnings (loss)

   $ 21,577      $ (304,490   $ 75,826      $ 86,368      $ 65,622       $ 78,645   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Interest expense (a)

     13,164        54,548        41,363        8,503        7,657         8,351   

Interest portion of rental expense (b)

     1,910        7,467        6,033        5,533        4,233         3,467   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Total fixed charges

     15,074      $ 62,015      $ 47,396      $ 14,036      $ 11,890       $ 11,818   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 
             
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

Ratio of earnings to fixed charges

     1.43        (c     1.60        6.15        5.52         6.65   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

 

(a) Includes amortization of deferred financing costs in all periods and bridge financing fees in 2015. The Company’s policy is to classify interest expense recognized on uncertain tax positions as income tax expense. The Company has excluded interest expense recognized on uncertain tax positions from the Ratio of Earnings to Fixed Charges. Capitalized interest is not considered material.
(b) Interest portion of rental expense is estimated to equal 1/3 of such expense, which is considered a reasonable approximation of the interest factor.
(c) Earnings were not sufficient to cover fixed charges for the period, which included goodwill and long-lived asset impairment charges of $401,667. The earnings shortfall was $366,505.