EXHIBIT 12.1
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
CHAPARRAL STEEL COMPANY AND SUBSIDIARIES
Three months ended August 31, | Year ended May 31, | ||||||||||||||||||||||||||||||
| Pro Forma | Pro Forma | ||||||||||||||||||||||||||||||
| 2005 | 2005 | 2004 | 2005 | 2005 | 2004 | 2003 | 2002 | 2001 | |||||||||||||||||||||||
In thousands except ratios | |||||||||||||||||||||||||||||||
Earnings | |||||||||||||||||||||||||||||||
Income (loss) from continuing operations before income taxes and changes in accounting principles | $ | 26,554 | $ | 26,910 | $ | 43,270 | $ | 133,400 | $ | 120,210 | $ | (8,997 | ) | $ | (100,580 | ) | $ | (20,245 | ) | $ | (74,039 | ) | |||||||||
Fixed charges | 8,647 | 8,291 | 12,093 | 34,681 | 47,871 | 50,211 | 51,867 | 51,396 | 50,939 | ||||||||||||||||||||||
Amortization of capitalized interest | 426 | 426 | 426 | 1,703 | 1,703 | 1,703 | 1,703 | 1,703 | 1,703 | ||||||||||||||||||||||
Less: Interest capitalized | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
Adjusted earnings | $ | 35,627 | $ | 35,627 | $ | 55,789 | $ | 169,784 | $ | 169,784 | $ | 42,917 | $ | (47,010 | ) | $ | 32,854 | $ | (21,397 | ) | |||||||||||
Fixed charges | |||||||||||||||||||||||||||||||
Interest expense | $ | 8,211 | $ | 7,953 | $ | 11,931 | $ | 32,875 | $ | 47,275 | $ | 49,597 | $ | 51,027 | $ | 50,581 | $ | 49,929 | |||||||||||||
Interest capitalized | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
Net amortization of debt discounts, premiums and issuance expense | 309 | 211 | — | 1,210 | — | — | — | — | — | ||||||||||||||||||||||
Interest Portion of rent expense | 127 | 127 | 162 | 596 | 596 | 614 | 840 | 815 | 1,010 | ||||||||||||||||||||||
Total fixed charges | $ | 8,647 | $ | 8,291 | $ | 12,093 | $ | 34,681 | $ | 47,871 | $ | 50,211 | $ | 51,867 | $ | 51,396 | $ | 50,939 | |||||||||||||
Ratio of earnings to fixed charges | 4.12 | 4.30 | 4.61 | 4.90 | 3.55 | 0.85 | (0.91 | ) | 0.64 | (0.42 | ) | ||||||||||||||||||||
Deficiency of earnings to cover fixed charges | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 7,294 | $ | 98,877 | $ | 18,542 | $ | 72,336 | |||||||||||||