EX-12.1 91 dex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

Exhibit 12.1

 

U.S. Concrete, Inc.

Computation of Ratio of Earnings to Fixed Charges

(In thousands)

 

     Year ended December 31,

    Three months ended
March 31,


 
     1999

    2000

    2001

    2002(1)

    2003

    2003(1)

    2004(1)(2)

 

Earnings before fixed charges:

                                                        

Income (loss) before income taxes and cumulative effect of accounting change

   $ 15,848     $ 28,610     $ 17,203     $ (3,430 )   $ 15,577     $ (6,847 )   $ (35,656 )

Interest expense

     1,708       14,095       19,386       17,127       16,855       4,189       3,967  

Interest portion of rentals

     671       1,822       3,700       4,113       4,210       984       1,108  
    


 


 


 


 


 


 


     $ 18,227     $ 44,527     $ 40,289     $ 17,810     $ 36,642     $ (1,674 )   $ (30,581 )
    


 


 


 


 


 


 


Fixed charges:

                                                        

Interest expense

   $ 1,708     $ 14,095     $ 19,386     $ 17,127     $ 16,855     $ 4,189     $ 3,967  

Capitalized interest

     24       —         —         —         —         —         —    

Interest portion of rentals

     671       1,822       3,700       4,113       4,210       984       1,108  
    


 


 


 


 


 


 


     $ 2,403     $ 15,917     $ 23,086     $ 21,240     $ 21,065     $ 5,173       5,075  
    


 


 


 


 


 


 


Ratio of earnings to fixed charges

     7.6 x     2.8 x     1.7 x     n/a       1.7 x     n/a       n/a  
    


 


 


 


 


 


 


Fixed charges in excess of earnings

     —         —         —         3,430       —         6,847       35,656  
    


 


 


 


 


 


 


(1) Earnings in 2002, the three months ended March 31, 2003, and the three months ended March 31, 2004 were insufficient to cover fixed charges by approximately $3.4 million, $6.8 million and $35.7 million respectively.
(2) During the three months ended March 31, 2004, as a result of the March 2004 refinancing, we recognized an ordinary loss on early extinguishment of debt of $28.8 million, which consisted of $25.9 million in premium payments to holders of the subordinated notes we prepaid and a write-off of $2.9 million of debt issuance costs associated with all the debt paid.