EX-12 78 exh12-1_1284781.htm EXHIBIT 12.1

Exhibit 12.1

 

Novamerican Steel Inc.

Computation of Ratio of Earnings to Fixed Charges

 

Novamerican Steel Inc.’s ratios of earnings to fixed charges were as follows:

 

 

 

Three Months Ended

 

 

Period Ended

 

 

 

February 23,
2008

 

 

November 24
2007

 

December  31
2006

 

 

 

(in thousands)

 

Earnings (1):

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

$

(14,354

)

 

$

(6,072

)

 

$

(148

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges, exclusive of capitalized interest

 

 

11,159

 

 

 

1,364

 

 

 

7

 

 

 

$

(3,195

)

 

$

(4,708

)

 

$

141

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges (1):

 

 

 

 

 

 

 

 

 

 

 

 

Interest charged to expense

 

$

10,772

 

 

$

1,290

 

 

$

4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest factor on rental expense (2)

 

 

387

 

 

 

74

 

 

 

3

 

 

 

 

11,159

 

 

 

1,364

 

 

 

7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest capitalized

 

 

 

 

 

 

 

 

 

 

 

$

11,159

 

 

$

1,364

 

 

$

7

 

Ratio of earnings to fixed charges

 

 

(0.3

)x

 

 

(3.5

)x

 

 

(21.1

)x

 

 

 

 

 

 

 

 

 

 

 

 

 

Excess of fixed charges over earnings (3)

 

$

14,354

 

 

$

6,072

 

 

$

148

 

 

 

_______________________

 

(1)

For purposes of computing the ratio of earnings to fixed charges, (a) earnings consist of income (loss) before income taxes plus fixed charges and (b) fixed charges consist of interest expense including the amortization of debt issuance costs and the interest portion of rent expense.

 

(2)

The portion of rent expense representative of interest is estimated at 30% of annual rent expense.

 

(3)

For the three months ended February 23, 2008, fixed charges exceeded earnings by $14.354 million. For the periods ended December 31, 2006 and November 24, 2007, fixed charges exceeded earnings by $0.148 million and $6.072 million, respectively.