Exhibit 12.1
MRC Global Inc.
Ratio of Earnings to Fixed Charges
(in millions)
Predecessor | Successor | |||||||||||||||||||||||||
Year ended December 31, | Eleven Months Ended December 31, 2007 | One Month Ended January 2007 | ||||||||||||||||||||||||
2011 | 2010 (1) | 2009 (2) | 2008 | |||||||||||||||||||||||
Earnings | ||||||||||||||||||||||||||
Pretax income (loss) from continuing operations | $ | 55.8 | $ | (75.2 | ) | $ | (354.8 | ) | $ | 406.7 | $ | 82.0 | $ | 11.2 | ||||||||||||
Fixed Charges | 147.0 | 140.2 | 117.0 | 85.2 | 62.1 | 0.1 | ||||||||||||||||||||
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Earnings | $ | 202.8 | $ | 65.0 | $ | (237.8 | ) | $ | 491.9 | $ | 144.1 | $ | 11.3 | |||||||||||||
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Fixed charges: | ||||||||||||||||||||||||||
Interest expense (3) | $ | 146.3 | $ | 139.6 | $ | 116.5 | $ | 84.5 | $ | 61.7 | $ | 0.1 | ||||||||||||||
Interest component of rental expense | 0.7 | 0.7 | 0.5 | 0.7 | 0.4 | — | ||||||||||||||||||||
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Total fixed charges | $ | 147.0 | $ | 140.3 | $ | 117.0 | $ | 85.2 | $ | 62.1 | $ | 0.1 | ||||||||||||||
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Ratio of earnings to fixed charges (4) | 1.4x | — | — | 5.8x | 2.3x | 107.7x | ||||||||||||||||||||
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(1) | Earnings were insufficient to cover fixed charges by $75 million for the year ended December 31, 2010. |
(2) | Earnings were insufficient to cover fixed charges by $355 million for the year ended December 31, 2009. |
(3) | Interest expense includes original issue discount and amortization charges associated with debt issuance costs. |
(4) | Certain ratios may not recompute due rounding differences. |