EX-12 10 l08534aexv12.txt EX-12 STATEMENT REGARDING COMPUTATION OF RATIOS EXHIBIT 12 ADVANCED LIGHTING TECHNOLOGIES, INC. EXHIBIT 12 -- STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (In thousands)
REORGANIZED COMPANY PREDECESSOR COMPANY ------- -------------------------------------------------------------- SIX MONTHS SIX MONTHS ENDED ENDED YEAR ENDED JUNE 30, JUNE 30, DECEMBER 31, ----------------------------------------------- 2004 2003 2003 2002 2001 2000 ---- ---- ---- ---- ---- ---- Consolidated pretax income (loss) from operations $1,006 $(13,235) $(27,627) $(29,355) $ 887 $ 2,588 Interest expense 6,852 7,459 11,608 12,121 13,839 14,314 Interest portion of rent expense 321 369 818 819 737 593 ------ -------- -------- -------- ------- ------- EARNINGS (LOSS) $8,179 $ (5,407) $(15,201) $(16,415) $15,463 $17,495 ====== ======== ======== ======== ======= ======= Interest expense $6,852 $ 7,459 $ 11,608 $ 12,121 $13,839 $14,314 Interest capitalized 8 37 370 900 619 458 Interest portion of rent expense 321 369 818 819 737 593 Preferred shares accretion - - 2,098 2,736 2,555 1,796 Additional preferred share accretion from cumulative effect of accounting change for beneficial conversion option - - - - 5,329 - ------ -------- -------- -------- ------- ------- FIXED CHARGES $7,181 $ 7,865 $ 14,894 $ 16,576 $23,079 $17,161 ====== ======== ======== ======== ======= ======= RATIO OF EARNINGS TO FIXED CHARGES 1.1 - - - 0.7 1.0 ====== ======== ======== ======== ======= =======
The Company adopted Emerging Issues Task Force ("EITF") Issue 00-27, "Application of EITF 98-5, `Convertible Securities with Beneficial Conversion Features or Contingently Adjustable Conversion Ratios,' to Certain Convertible Instruments" in the quarter ended December 31, 2000. EITF Issue 00-27 requires that a convertible instrument's beneficial conversion feature be measured using an effective conversion price. As a result, the value assigned to the redeemable preferred stock was adjusted by $5,329 for the discount related to the beneficial conversion option. This additional discount was immediately accreted to paid-in capital in a manner similar to a cumulative effect of an accounting change since the redeemable preferred stock was convertible at the time of issuance. For purposes of calculating the unaudited ratio of earnings to fixed charges, earnings consist of income (loss) from continuing operations before provision for income taxes plus fixed charges. Fixed charges consist of interest charges and amortization of debt issuance cost, whether expensed or capitalized, and that portion of rental expense that is representative of interest. Earnings were inadequate to cover fixed charge requirements by $13,272 for the six months ended December 31, 2003, $30,095 in fiscal 2003, $32,991 in fiscal 2002, and $7,616 in fiscal 2001.