Atlantic Scrap & Processing - Wilmington Inactive
Filed: 2 Jun 09, 12:00am
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
The following table sets forth the computation of our ratio of earnings to fixed charges for the periods indicated:
| | | | | | | Three Months Ended March 31, 2009 | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | Fiscal Year Ended December 31, | |||||||||||||||||||
| | 2004 | 2005 | 2006 | 2007 | 2008 | |||||||||||||||
| | (dollars in thousands) | |||||||||||||||||||
Interest expense, including amortization of debt issuance costs | $ | 45,355 | $ | 39,547 | $ | 37,492 | $ | 60,526 | $ | 162,396 | $ | 36,251 | ||||||||
Capitalized interest | 6,935 | 730 | 1,686 | 13,717 | 17,822 | 3,051 | ||||||||||||||
Fixed charges | 52,290 | 40,277 | 39,178 | 74,243 | 180,218 | 39,302 | ||||||||||||||
Income before taxes and extraordinary items | 475,033 | 360,626 | 631,555 | 630,238 | 743,813 | (147,494 | ) | |||||||||||||
Amortization of capitalized interest | 3,729 | 4,073 | 4,814 | 5,069 | 4,670 | 921 | ||||||||||||||
Less capitalized interest | (6,935 | ) | (730 | ) | (1,686 | ) | (13,717 | ) | (17,822 | ) | (3,051 | ) | ||||||||
Adjusted earnings | $ | 524,117 | $ | 404,246 | $ | 673,861 | $ | 695,833 | $ | 910,879 | $ | (110,022 | ) | |||||||
Ratio | 10.02 | x | 10.04 | x | 17.20 | x | 9.37 | x | 5.05 | x | — | |||||||||
For purposes of calculating our ratio of earnings to fixed charges, earnings consist of earnings from continuing operations before income taxes and extraordinary items, adjusted for the portion of fixed charges deducted from the earnings, plus amortization of capitalized interest. Fixed charges consist of interest on all indebtedness, including capitalized interest, and amortization of debt issuances costs. For the three months ended March 31, 2009, earnings were inadequate to cover fixed charges by $149.3 million.