EX-12 8 dex12.txt COMPUTATION OF FINANCIAL RATIOS OF AIRGAS, INC. Exhibit 12 ---------- AIRGAS, INC. COMPUTATION OF FINANCIAL RATIOS (in thousands, except ratios)
Fiscal Year Ended March 31, ------------------------------------------------------ Quarter Ended Ratio of Earnings to Fixed Charges 1997 1998 1999 2000 2001 6/30/01 ---------------------------------- --------------------------------------------------------------------- EARNINGS COMPUTATION: Add: --- Pretax income from continuing operations before equity method earnings............................... $ 82,285 $118,948 $112,996 $106,731 $107,949 $32,784 Fixed charges........................................ 49,894 65,831 74,697 71,862 77,611 16,348 Amortization of capitalized interest................. -- -- -- -- -- -- Distributed income of equity investees............... 1,729 4,165 4,533 3,973 3,668 784 Share of pre-tax losses for which charges arising from guarantees are included in fixed charges........ -- -- -- -- -- -- -------- -------- -------- -------- ------- -------- $133,908 $188,944 $192,226 $182,566 $189,228 $49,916 ======== ======== ======== ======== ======== ======= Subract: ------- Interest capitalized................................. -- -- -- -- -- -- Preferred dividend requirements of consolidated subsidiaries......................................... -- -- -- -- -- -- Minority interest in pre-tax income of subsidiaries that have not incurred fixed charges................. (958) (2,931) (7,042) (3,391) (2,260) (913) -------- -------- -------- -------- ------- -------- Earnings for purposes of computation................. $132,950 $186,013 $185,184 $179,175 $186,968 $49,003 ======== ======== ======== ======== ======== ======= FIXED CHARGES COMPUTATION: Interest expensed.................................... $ 41,777 $ 55,403 $ 62,588 $ 58,712 $ 62,737 $12,637 Interest capitalized................................. -- -- -- -- -- -- Amortization of premiums or discounts related to debt 8,000 10,133 11,800 12,833 14,567 3,606 Amortization of capitalized expenses related to debt. 117 295 309 317 307 105 Estimate of the interest component of rent expense... -- -- -- -- -- -- Preferred dividend requirements of consolidated subsidiaries......................................... -- -- -- -- -- -- -------- -------- -------- -------- ------- ------- Fixed charges for purposes of computation............ $ 49,894 $ 65,831 $ 74,697 $ 71,862 $ 77,611 $16,348 ======== ======== ======== ======== ======== ======= RATIO OF EARNINGS TO FIXED CHARGES 2.66X 2.83X 2.48X 2.49X 2.41X 3.00X
Ratio of Adjusted EBITDA to Interest Expense -------------------------------------------- ADJUSTED EBITDA COMPUTATION: Adjusted EBITDA represents EBITDA (1) plus one-time losses and special charges minus one-time gains and special recoveries. Adjusted EBITDA was calculated as follows:
Fiscal Year Ended March 31, ------------------------------------------------------- 1999 2000 2001 ------------------------------------------------------- EBITDA....................................... $205,455 $200,012 $198,371 One-time losses.............................. -- 11,300 6,000 Special charges (recoveries)................. (1,000) (2,829) 3,643 One-time gains............................... (1,800) -- -- ------------------------------------------------------- Adjusted EBITDA.............................. $202,655 $208,483 $208,014 ======== ======== ========
(1) EBITDA represents total operating income plus depreciation, amortization and cash dividends and fees from unconsolidated affiliates. RATIO OF ADJUSTED EBITDA TO INTEREST EXPENSE COMPUTATION:
Fiscal Year Ended March 31, ----------------------------------------------------------------- 2001, 1999 2000 2001 As Adjusted ----------------------------------------------------------------- Adjusted EBITDA............................ $202,655 $208,483 $208,014 $208,014 Interest expense (2)....................... 62,588 58,712 62,737 70,989 RATIO OF ADJUSTED EBITDA TO INTEREST EXPENSE 3.24x 3.55x 3.32x 2.93x
(2) For fiscal 2001, as adjusted, interest expense includes the net effect of the Refinancing Transactions on interest expense of $8.3 million. Ratio of Adjusted Debt to Adjusted EBITDA ----------------------------------------- ADJUSTED DEBT COMPUTATION: Adjusted debt represents total long-term debt as presented on the balance sheet plus synthetic lease obligations and amounts drawn under the accounts receivable securitization facility. Adjusted debt was calculated as follows:
March 31, --------------------------------------------------------------------- 2001, 1999 2000 2001 As Adjusted --------------------------------------------------------------------- Long-term debt (1)............................... $867,486 $877,493 $693,609 $639,134 Synthetic lease obligations...................... 15,162 46,956 44,230 44,230 Accounts receivable securitization facility (2).. -- -- 73,200 137,300 --------------------------------------------------------------------- Adjusted debt.................................. $882,648 $924,449 $811,039 $820,664 ======== ======== ======== ========
(1) Long-term debt, at March 31, 2001, as adjusted, represents long-term debt less net proceeds from the second tranche of the accounts receivable securitization facility, which closed in April 2001. (2) Accounts receivable securitization facility, at March 31, 2001, as adjusted, represents amounts drawn under the facility plus the proceeds from the second tranche of the facility, which closed in April 2001. ADJUSTED EBITDA COMPUTATION: See calculation above. RATIO OF ADJUSTED DEBT TO ADJUSTED EBITDA COMPUTATION:
Fiscal ----------------------------------------------------------------------- 2001, 1999 2000 2001 As Adjusted ----------------------------------------------------------------------- Adjusted Debt...................................... $882,648 $924,449 $811,039 $820,664 Adjusted EBITDA.................................... 202,655 208,483 208,014 208,014 RATIO OF ADJUSTED DEBT TO ADJUSTED EBITDA 4.36x 4.43x 3.90x 3.95x