EX-12.1 3 exhibit121ratioofearningst.htm RATIO OF EARNINGS TO FIXED CHARGES Exhibit


EXHIBIT 12.1

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in thousands, except ratio data)
 
Years Ended July 31,
 
2017
 
2016
 
2015
 
2014
 
2013
Earnings:
 
 
 
 
 
Earnings (Loss) from continuing operations before income taxes
$
126,632

 
$
109,345

 
$
24,995

 
$
(53,109
)
 
$
(95,674
)
Add back:
 
 
 
 
 
 
 
 
 
Fixed charges
6,597

 
8,773

 
12,155

 
15,211

 
17,592

Less:
 
 
 
 
 
 
 
 
 
Preferential stock dividends and premium on redemption of preferred stock
—

 
—

 
—

 
—

 
—

Total earnings (loss)
$
133,229

 
$
118,118

 
$
37,150

 
$
(37,898
)
 
$
(78,082
)
 
 
 
 
 
 
 
 
 
 
Fixed Charges:
 
 
 
 
 
 
 
 
 
Interest, capitalized and expensed
$
5,254

 
$
7,559

 
$
10,429

 
$
13,879

 
$
16,222

Amortization of debt expense
250

 
265

 
727

 
421

 
419

Interest portion of rent expense
1,093

 
949

 
999

 
911

 
951

Preferential stock dividends and premium on redemption of preferred stock
—

 
—

 
—

 
—

 
—

Total fixed charges
$
6,597

 
$
8,773

 
$
12,155

 
$
15,211

 
$
17,592

 
 
 
 
 
 
 
 
 
 
Ratio of Earnings to Fixed Charges
20.2x

 
13.5x

 
3.1x

 
(1
)
 
(2
)

(1)
Due to Brady Corporation's loss for the year ended July 31, 2014, the Company did not have earnings adequate to cover fixed charges, and the ratio of earnings to fixed charges therefore has not been presented for that period. The coverage deficiency necessary for the ratio of earnings to fixed charges to equal 1.0x was $53.1 million for the year ended July 31, 2014. The non-cash deficiency was primarily a result of a non-cash intangible asset impairment charge of $148.6 million recognized during the fourth quarter of fiscal 2014.

(2)
Due to Brady Corporation's loss for the year ended July 31, 2013, the Company did not have earnings adequate to cover fixed charges, and the ratio of earnings to fixed charges therefore has not been presented for that period. The coverage deficiency necessary for the ratio of earnings to fixed charges to equal 1.0x was $95.7 million for the year ended July 31, 2013. The non-cash deficiency was primarily a result of a non-cash intangible asset impairment charge of $204.4 million recognized during the fourth quarter of fiscal 2013.