EX-12 2 a06-9969_2ex12.htm EX-12

Exhibit 12

METALDYNE CORPORATION
Computation of Ratio of Earnings to Combined Fixed Charges and
Preferred Stock Dividends

 

 

(In thousands)

 

 

 

Quarter Ended
April 2,
2006

 

Year Ended
January 1,
2006

 

Year Ended
January 2,
2005

 

Year Ended
December 28,
2003

 

Year Ended
December 29,
2002

 

Year Ended
December 31,
2001

 

EARNINGS (LOSS) BEFORE INCOME TAXES AND FIXED CHARGES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes and cumulative effect of accounting change, net

 

 

$

(23,028

)

 

 

$

(87,041

)

 

 

$

(61,112

)

 

 

$

(96,850

)

 

 

$

(103,121

)

 

 

$

(70,533

)

 

(Deduct) add equity in undistributed (earnings) loss of less-than-fifty percent owned companies

 

 

(959

)

 

 

11,011

 

 

 

(1,451

)

 

 

20,712

 

 

 

1,410

 

 

 

8,930

 

 

Add interest on indebtedness, net 

 

 

23,947

 

 

 

89,650

 

 

 

81,818

 

 

 

75,283

 

 

 

90,778

 

 

 

147,920

 

 

Add amortization of debt expense

 

 

1,012

 

 

 

3,206

 

 

 

3,880

 

 

 

2,480

 

 

 

4,770

 

 

 

11,620

 

 

Add preferred stock dividends and accretion

 

 

6,472

 

 

 

22,737

 

 

 

19,900

 

 

 

—

 

 

 

—

 

 

 

—

 

 

Estimated interest factor for rentals(d)

 

 

4,668

 

 

 

18,738

 

 

 

15,451

 

 

 

11,888

 

 

 

11,788

 

 

 

8,525

 

 

Earnings before income taxes and fixed charges

 

 

$

12,112

 

 

 

$

58,301

 

 

 

$

58,486

 

 

 

$

13,513

 

 

 

$

5,625

 

 

 

$

106,462

 

 

FIXED CHARGES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on indebtedness, net

 

 

$

23,947

 

 

 

$

89,650

 

 

 

$

81,818

 

 

 

$

75,283

 

 

 

$

90,778

 

 

 

$

147,920

 

 

Amortization of debt expense

 

 

1,012

 

 

 

3,206

 

 

 

3,880

 

 

 

2,480

 

 

 

4,770

 

 

 

11,620

 

 

Add preferred stock dividends and accretion

 

 

6,472

 

 

 

22,737

 

 

 

19,900

 

 

 

—

 

 

 

—

 

 

 

—

 

 

Estimated interest factor for rentals(d)

 

 

4,668

 

 

 

18,738

 

 

 

15,451

 

 

 

11,888

 

 

 

11,788

 

 

 

8,525

 

 

Total fixed charges

 

 

36,099

 

 

 

134,331

 

 

 

121,049

 

 

 

89,651

 

 

 

107,336

 

 

 

168,065

 

 

Preferred stock dividends(a)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

10,320

 

 

 

13,090

 

 

 

6,430

 

 

Combined fixed charges and preferred stock dividends

 

 

$

36,099

 

 

 

$

134,331

 

 

 

$

121,049

 

 

 

$

99,971

 

 

 

$

120,426

 

 

 

$

174,495

 

 

Ratio of earnings to fixed charges 

 

 

—

(b)

 

 

—

(b)

 

 

—

(b)

 

 

—

(b)

 

 

—

(b)

 

 

—

(b)

 

Ratio of earnings to combined fixed charges and preferred stock dividends

 

 

—

(c)

 

 

—

(c)

 

 

—

(c)

 

 

—

(c)

 

 

—

(c)

 

 

—

(c)

 

(a)              Based on the Company’s effective tax rate, represents the amount of income before provision for income taxes required to meet the preferred stock dividend requirements of the Company and its 50% owned companies.

(b)             Results of operations for the nine months ended April 2, 2006 and for the years ended January 1, 2006, January 2, 2005, December 28, 2003, December 29, 2002 and December 31, 2001 are inadequate to cover fixed charges by $23,987, $76,030, $62,563, $76,138, $101,711 and $61,603, respectively.

(c)              Results of operations for the three months ended April 2, 2006 and for the years ended January 1, 2006, January 2, 2005, December 28, 2003, December 29, 2002 and December 31, 2001 are inadequate to cover fixed charges and preferred stock dividends by $23,987, $76,030, $62,563, $86,458, $114,801 and $68,033, respectively.

(d)             Deemed to represent one-third of rental expense on operating leases.