EX-12 3 a05-20354_1ex12.htm STATEMENTS REGARDING COMPUTATION OF RATIOS

Exhibit 12

METALDYNE CORPORATION
Computation Of Ratio Of Earnings To Combined Fixed Charges And
Preferred Stock Dividends
(Dollars in thousands)

 

 

9 Months Ended
October 2,

 

Year Ended
January 2,

 

Year Ended
December 28,

 

Year Ended
December 29,

 

Year Ended
December 31,

 

11/28 - 12/31

 

 

 

2005

 

2005

 

2003

 

2002

 

2001

 

2000

 

 

 

 

 

 

 

 

 

(Restated)

 

(Restated)

 

(Restated)

 

EARNINGS (LOSS) BEFORE INCOME TAXES AND FIXED CHARGES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income taxes and cumulative effect of accounting change, net

 

 

$

(28,930

)

 

 

$

(64,860

)

 

 

$

(83,990

)

 

 

$

(69,090

)

 

 

$

(47,040

)

 

 

$

(42,820

)

 

(Deduct) add equity in undistributed earnings (loss) of less-than-fifty percent owned
companies

 

 

(1,640

)

 

 

(1,450

)

 

 

20,700

 

 

 

1,410

 

 

 

8,930

 

 

 

1,000

 

 

Add interest on indebtedness, net

 

 

66,930

 

 

 

82,140

 

 

 

75,510

 

 

 

91,000

 

 

 

148,160

 

 

 

14,440

 

 

Add amortization of debt expense

 

 

2,400

 

 

 

3,880

 

 

 

2,480

 

 

 

4,770

 

 

 

11,620

 

 

 

550

 

 

Add preferred stock dividends and accretion

 

 

16,800

 

 

 

19,900

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

Estimated interest factor for rentals(d)

 

 

14,180

 

 

 

16,480

 

 

 

12,930

 

 

 

12,460

 

 

 

9,730

 

 

 

310

 

 

Earnings before income taxes and fixed charges

 

 

$

69,740

 

 

 

$

56,090

 

 

 

$

27,630

 

 

 

$

40,550

 

 

 

$

131,400

 

 

 

$

(26,520

)

 

FIXED CHARGES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on indebtedness,
net

 

 

$

66,930

 

 

 

$

82,140

 

 

 

$

75,510

 

 

 

$

91,000

 

 

 

$

148,160

 

 

 

$

14,440

 

 

Amortization of debt expense

 

 

2,400

 

 

 

3,880

 

 

 

2,480

 

 

 

4,770

 

 

 

11,620

 

 

 

550

 

 

Preferred stock dividends and accretion

 

 

16,800

 

 

 

19,900

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

Estimated interest factor for rentals(d)

 

 

14,180

 

 

 

16,480

 

 

 

12,930

 

 

 

12,460

 

 

 

9,730

 

 

 

310

 

 

Total fixed charges

 

 

100,310

 

 

 

122,400

 

 

 

90,920

 

 

 

108,230

 

 

 

169,510

 

 

 

15,300

 

 

Preferred stock
dividends(a)

 

 

—

 

 

 

—

 

 

 

10,320

 

 

 

13,090

 

 

 

6,430

 

 

 

620

 

 

Combined fixed charges and preferred stock dividends

 

 

$

100,310

 

 

 

$

122,400

 

 

 

$

101,240

 

 

 

$

121,320

 

 

 

$

175,940

 

 

 

$

15,920

 

 

Ratio of earnings to fixed charges

 

 

—

(b)

 

 

—

(b)

 

 

—

(b)

 

 

—

(b)

 

 

—

(b)

 

 

—

(b)

 

Ratio of earnings to combined fixed charges and preferred stock dividends

 

 

—

(c)

 

 

—

(c)

 

 

—

(c)

 

 

—

(c)

 

 

—

(c)

 

 

—

(c)

 

(a)              Based on the Company’s effective tax rate, represents the amount of income before provision for income taxes required to meet the preferred stock dividend requirements of the Company and its 50% owned companies.

(b)             Results of operations for the nine months ended October 2, 2005, years ended January 2, 2005, December 28, 2003, December 29, 2002 (as restated) and December 31, 2001 (as restated) and the 34 days ended December 31, 2000 (as restated) are inadequate to cover fixed charges by $30,570, $66,310, $63,290, $67,680, $38,110 and $41,820, respectively

(c)              Results of operations for the nine months ended October 2, 2005, years ended January 2, 2005, December 28, 2003, December 29, 2002 and December 31, 2001 and the 34 days ended December 31, 2000 are inadequate to cover fixed charges and preferred stock dividends by $30,570, $66,310, $73,610, $80,770, $44,540 and $42,440, respectively.

(d)             Deemed to represent one-third of rental expense on operating leases.