EX-12.1 2 l09836bexv12w1.txt EX-12.1 STATEMENT REGARDING COMPUTATION OF RATIO OF EARNINGS . . . Exhibit 12.1 RATIO OF EARNINGS TO FIXED CHARGES
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED MAY 31, NOVEMBER 30, ------------------------------------------------------------ 2004(1) 2004 2003(2) 2002(3) 2001 2000 ------------ ------------------------------------------------------------ Ratio of Earnings to Fixed Charges 4.97 6.17 2.28 4.03 2.33 2.19 Income Before Income Tax 97,214 217,616 47,853 154,124 101,487 71,761 ------------ ------------------------------------------------------------ Fixed Charges: Interest expense 19,121 31,221 28,149 42,558 68,885 54,436 Amortized debt expense 1,119 1,868 1,044 639 617 321 Operating lease, estimated interest (one-third of net rental expense 4,241 9,033 8,100 7,700 6,841 5,728 ------------ ------------------------------------------------------------ Total Fixed Charges 24,481 42,123 37,294 50,897 76,343 60,485 ------------ ------------------------------------------------------------
(1) Excluding the impact of the $47 million asbestos charge, the ratio of earnings to fixed charges would have been 6.89 for the six months ended November 30, 2004. The effect of removing the impact of the $47 million asbestos charge from published results is as follows:
11/30/04 ----------- Published Pretax Income 97,214 Reverse: Asbestos Charge 47,000 ----------- Adjusted Pretax Income 144,214 Fixed Charges (per above) 24,481 ----------- Pretax plus Fixed Charges 168,695 =========== Ratio of Earnings to Fixed Charges, excluding asbestos charge 6.89 ===========
(2) Excluding the impact of the $140 million asbestos charge, the ratio of earnings to fixed charges would have been 6.04 for the fiscal year ended May 31, 2003. The effect of removing the impact of the $140 million asbestos charge from published results is as follows:
5/31/03 ----------- Published Pretax Income 47,853 Reverse: Asbestos Charge 140,000 ----------- Adjusted Pretax Income 187,853 Fixed Charges (per above) 37,294 ----------- Pretax plus Fixed Charges 225,147 Ratio of Earnings to Fixed Charges, excluding asbestos charge 6.04 -----------
(3) RPM adopted Statement of Financial Accounting Standards No. 142, "Goodwill and Other Intangibles Assets," effective June 1, 2001, which resulted in a reduction of amortization expense for the year ended May 31, 2002 by approximately $24 million. Had the company not adopted the required accounting change, the ratio of earnings to fixed charges would have been 3.56. The effect of removing the impact of SFAS No. 142 from published results is as follows:
5/31/02 ---------- Published Pretax Income 154,124 Reverse: SFAS No. 142 Adjustments (23,810) ---------- Adjusted Pretax Income 130,314 Fixed Charges (per above) 50,897 ---------- Pretax plus Fixed Charges 181,211 Ratio: Earnings to fixed charges, net of SFAS No. 142 3.56 ----------