Exhibit 12.1
A.M. Castle & Co.
Computation of Ratio of Earnings to Fixed Charges
(Dollars in thousands)
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| For the year ended December 31, |
| For the three months |
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| 2007 |
| 2008 |
| 2009 |
| 2010 |
| 2011 |
| ended March 31, 2012 |
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Pre-tax income (loss) from continuing operations before adjustment for income or loss from equity investee |
| $ | 77,776 |
| $ | (5,241 | ) | $ | (43,569 | ) | $ | (14,326 | ) | $ | (14,613 | ) | $ | (2,935 | ) |
Fixed charges (see below) |
| 19,254 |
| 15,523 |
| 10,076 |
| 8,312 |
| 16,155 |
| 22,501 |
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Amortization of capitalized interest |
| — |
| 31 |
| 62 |
| 62 |
| 62 |
| 10 |
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Distributed income of equity method investee |
| 1,545 |
| 2,955 |
| 485 |
| 1,260 |
| 3,117 |
| 678 |
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Interest capitalized |
| (267 | ) | (160 | ) | — |
| — |
| — |
| — |
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Total adjusted earnings available for payment of fixed charges |
| $ | 98,308 |
| $ | 13,108 |
| $ | (32,946 | ) | $ | (4,692 | ) | $ | 4,721 |
| $ | 20,254 |
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Fixed Charges: |
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Interest expense |
| $ | 12,092 |
| $ | 9,498 |
| $ | 5,919 |
| $ | 4,504 |
| $ | 12,246 |
| $ | 20,340 |
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Interest capitalized |
| 267 |
| 160 |
| — |
| — |
| — |
| — |
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Amortization of deferred financing costs and debt discounts |
| 1,207 |
| 716 |
| 684 |
| 685 |
| 1,662 |
| 1,512 |
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Estimated interest component of rental expense |
| 5,688 |
| 5,149 |
| 3,473 |
| 3,123 |
| 2,247 |
| 649 |
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Total fixed charges |
| $ | 19,254 |
| $ | 15,523 |
| $ | 10,076 |
| $ | 8,312 |
| $ | 16,155 |
| $ | 22,501 |
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Ratio of earnings to fixed charges |
| 5.11 |
| — | (a) | — | (b) | — | (c) | — | (d) | — | (e) | ||||||
(a) Total fixed charges exceeded total adjusted earnings available for payment of fixed charges by $2,415, due to a goodwill impairment charge of $58,860 recorded in the Company’s Metals segment in December 2008.
(b) Total fixed charges exceeded total adjusted earnings available for payment of fixed charges by $43,022.
(c) Total fixed charges exceeded total adjusted earnings available for payment of fixed charges by $13,004.
(d) Total fixed charges exceeded total adjusted earnings available for payment of fixed charges by $11,434.
(e) Total fixed charges exceeded total adjusted earnings available for payment of fixed charges by $2,247.
