EX-12.1 39 k12696exv12w1.txt STATEMENT RE COMPUTATION OF RATIOS EXHIBIT 12.1 TITAN INTERNATIONAL, INC. COMPUTATION OF EARNINGS TO FIXED CHARGES (AMOUNTS IN THOUSANDS)
Year ended December 31, -------------------------------------------------- 2002 2003 2004 2005 2006 -------- -------- -------- ------- ------- Earnings: (Loss) earnings before income taxes Add: $(44,293) $(33,668) $ 15,215 $(2,885) $ 8,574 Fixed charges 22,178 21,478 16,872 9,411 17,789 Distributed income of equity investees 185 212 256 914 0 Deduct: (Loss) earnings of equity investees (519) 2,398 1,278 2,938 0 Loss on investments (12,376) (2,707) 0 0 0 Debt termination expense 0 0 (3,654) 0 0 Noncash convertible debt conversion charge 0 0 0 (7,225) 0 -------- -------- -------- ------- ------- Earnings available for fixed charges $ (9,035) $(11,669) $ 34,719 $11,727 $26,363 ======== ======== ======== ======= ======= Fixed charges: Interest expense $ 20,565 $ 20,231 $ 16,159 $ 8,617 $17,001 Interest component of rental expense (a) 1,613 1,247 713 794 788 -------- -------- -------- ------- ------- Total fixed charges $ 22,178 $ 21,478 $ 16,872 $ 9,411 $17,789 ======== ======== ======== ======= ======= Ratio of earnings to fixed charges (b) n/a n/a 2.06 1.25 1.48
(a) The interest component of rental expense was estimated to be one-fourth of lease rental expense. (b) Earnings were insufficient to cover fixed charges for the years ended December 31, 2002 and 2003, by $31.2 million and $33.1 million, respectively.