EX-12 4 dex12.txt COMPUTATION OF RATIO OF EARNINGS Exhibit 12 Delco Remy International, Inc. Statement of Computation of Ratio of Earnings to Fixed Charges
Fiscal Year Ended July 31 --------------------------------------------------------------- 1996 1997 1998 1999 2000 --------------------------------------------------------------- Earnings: Income (1oss) from continuing operations before income taxes (benefit), minority interest in income of subsidiaries, income (loss) from unconsolidated joint ventures preferred dividend requirement of subsidiary, deemed dividend on preferred stock conversion and extraordinary item $ 13,312 $(10,737) $ (134) $ 43,301 $ 30,972 Fixed charges 31,346 42,842 46,759 48,103 51,796 Less preferred stock dividend requirement (2,527) (2,747) (1,054) - - Less deemed dividend on preferred stock conversion - - (2,678) - - Less interest capitalized during period (393) - - - - ------------------------------------------------------------- Total earnings $ 41,738 $ 29,358 $ 42,893 $ 91,404 $ 82,768 ============================================================= Fixed Charges: Interest expense $ 27,367 $ 38,774 $ 40,291 $ 45,505 $ 48,766 Interest capitalized during period 393 - - - - Preferred stock dividend requirement 2,527 2,747 1,054 - - Deemed dividend on preferred stock conversion - - 2,678 - - Implicit interest in rent expense 1,059 1,321 2,736 2,598 3,030 ------------------------------------------------------------- Total Fixed Charges $ 31,346 $ 42,842 $ 46,759 $ 48,103 $ 51,796 ============================================================= Ratio of Earnings to Fixed Charges (a) 1.3x - - 1.9x 1.6x ============================================================= Pro Forma -------------------------------- Three Months Fiscal Year Three Months Ended March 31, Ended July 31, Ended 2001 2000 2000 March 31, 2001 ------------------------------------------------------------ Earnings: Income (1oss) from continuing operations before income taxes (benefit), minority interest in income of subsidiaries, income (loss) from unconsolidated joint ventures preferred dividend requirement of subsidiary, deemed dividend on preferred stock conversion and extraordinary item $ 477 $ 21,014 $ 28,868 $ (1,093) Fixed charges 14,044 11,853 61,678 15,614 Less preferred stock dividend requirement - - - - Less deemed dividend on preferred stock conversion - - - - Less interest capitalized during period - - - - ---------------------------------------------------------- Total earnings $ 14,521 $ 32,867 $ 90,546 $ 14,521 ========================================================== Fixed Charges: Interest expense $ 13,294 $ 11,103 $ 58,648 $ 14,864 Interest capitalized during period - - - - Preferred stock dividend requirement - - - - Deemed dividend on preferred stock conversion - - - - Implicit interest in rent expense 750 750 3,030 750 ---------------------------------------------------------- Total Fixed Charges $ 14,044 $ 11,853 $ 61,678 $ 15,614 Ratio of Earnings to Fixed Charges (a) 1.0x 2.8x 1.5x - ==========================================================
(a) The deficiency of earnings to fixed charges was $13.5 million and $3.9 million in fiscal-years 1997 and 1998, respectively. Excluding non- recurring charges, the ratio of earnings to fixed charges would have been 1.5x in 1997 and 1.5x in 1998. On a pro forma basis, the deficiency of earnings to fixed charges would have been $1.l million in the three months ended March 31, 2001. Excluding the tender offer and merger expenses, the ratio of earnings to fixed charges would have been 1.2x on a pro forma basis.