EX-12.1 8 b330740_ex12-1.txt COMPUTATION OF RATIO EXHIBIT 12.1 STEEL DYNAMICS, INC. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (DOLLARS IN THOUSANDS)
1999 2000 2001 2002 2003 --------- --------- --------- --------- --------- Interest expense, including amortization of debt issuance costs ............................. $ 22,919 $ 21,038 $ 21,015 $ 38,513 $ 38,568 Capitalized interest .................................. 13,196 17,477 13,993 11,413 7,820 --------- --------- --------- --------- --------- Fixed charges (a) ............................. 36,115 38,515 35,008 49,926 46,388 Income before taxes and extraordinary items ........... 65,279 84,485 5,113 124,477 75,437 Amortization of capitalized interest .................. 1,365 1,501 1,597 2,932 3,859 Less capitalized interest ............................. (13,196) (17,477) (13,993) (11,413) (7,820) --------- --------- --------- --------- --------- Adjusted earnings (b) ......................... $ 89,563 $ 107,024 $ 27,725 $ 165,922 $ 117,864 ========= ========= ========= ========= ========= Ratio (b) / (a) ....................................... 2.48x 2.78x 0.79x 3.32x 2.54x ========= ========= ========= ========= =========
For purposes of calculating our ratio of earnings to fixed charges, earnings consist of earnings from continuing operations before income taxes and extraordinary items, adjusted for the portion of fixed charges deducted from the earnings, plus amortization of capitalized interest. Fixed charges consist of interest on all indebtedness, including capitalized interest, and amortization of debt issuances costs. In 2001, our earnings were insufficient to cover our fixed charges by $7.3 million.