EX-12.1 8 d04109exv12w1.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 Years Ended December 31, --------------------------------------------------------------------------- (In thousands, except ratio) 1997 1998 1999 2000 2001 2002 -------- -------- -------- -------- -------- -------- EARNINGS AS DEFINED: Income (loss) before income taxes, cumulative effect of accounting change, minority interest and equity in earnings of joint ventures $(45,709) $ 88,817 $123,138 $100,576 $(44,271) $ 91,998 Fixed charges 22,777 30,225 48,688 81,772 69,188 59,490 -------- -------- -------- -------- -------- -------- Earnings as defined $(22,932) $119,042 $171,826 $182,348 $ 24,917 $151,488 -------- -------- -------- -------- -------- -------- FIXED CHARGES AS DEFINED: Interest expense $ 14,928 $ 20,692 $ 35,693 $ 59,074 $ 45,046 $ 33,877 Amortization of deferred finance charges 116 133 195 265 842 2,603 Portion of rental expense representative of the interest factor 7,733 9,400 12,800 22,433 23,300 23,010 -------- -------- -------- -------- -------- -------- Fixed charges as defined $ 22,777 $ 30,225 $ 48,688 $ 81,772 $ 69,188 $ 59,490 -------- -------- -------- -------- -------- -------- RATIO OF EARNINGS TO FIXED CHARGES(1)(2) -- 3.94 3.53 2.23 -- 2.55 -------- -------- -------- -------- -------- --------
(1) Due to restructuring charges in 2001 of $73.2 million (of which $7.8 million was included in cost 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.