EX-12.1 30 dex121.htm STATEMENT REGARDING COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Statement Regarding Computation of Ratio of Earnings to Fixed Charges

Exhibit 12.1

 

CHAPARRAL STEEL COMPANY

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(DOLLAR AMOUNTS IN THOUSANDS)

 

     Year Ended May 31,
  
    

Pro Forma

2005

    2005
    2004
     2003
     2002
     2001
  

Earnings:

                                               

Income (loss) from continuing operations before income taxes

    $ 133,400    $ 120,210    $ (8,997 )   $ (100,580 )   $ (20,245 )   $ (74,039 )

Fixed charges

      34,681      47,871      50,211       51,867       51,396       50,939  

Amortization of capitalized interest

      1,703      1,703      1,703       1,703       1,703       1,703  
    
  
  
 
 
 

Total earnings (loss)

    $ 169,784    $ 169,784    $ 42,917     $ (47,010 )   $ 32,854     $ (21,397 )
    
  
  
 
 
 

Fixed charges:

                                               

Interest expense

    $ 32,875    $ 47,275    $ 49,597     $ 51,027     $ 50,581     $ 49,929  

Net amortization of debt discount, premium and issuance expense

      1,210      —        —         —         —         —    

Interest factor included in rents

      596      596      614       840       815       1,010  
    
  
  
 
 
 

Total fixed charges

    $ 34,681    $ 47,871    $ 50,211     $ 51,867     $ 51,396     $ 50,939  
    
  
  
 
 
 

Ratio of earnings to fixed charges

      4.90x      3.55x      —         —         —         —    

Deficiency of earnings to cover fixed charges

    $ —      $ —      $ 7,294     $ 98,876     $ 18,542     $ 72,336