Flow International 10-Q 2012 Q2 Quarterly report

Exhibit 99.1

DEBT COVENANT COMPLIANCE

AS OF OCTOBER 31, 2011

Adjusted EBITDA:

(in 000s)	LTM (i)		Q3 FY11		Q4 FY11			Q1 FY12		Q2 FY12
Net Income (Loss)	$	5,119	$	1,241	$	388		$	711	$	2,779
Add Back:
Depreciation and Amortization	6,269		1,522		1,596			1,572		1,579
Income Tax Provision (Benefit)	3,265		1,058		(31		)	100		2,138
Interest Charges	1,546		418		508			311		309
Non-Cash Charges (ii)	2,211		687		300			666		558
Adjusted EBITDA	$	18,410	$	4,926	$	2,761		$	3,360	$	7,363
I. Consolidated Leverage Ratio
A. Total Long-Term Obligations and Notes Payable (iii)	$	4,277
B. Adjusted EBITDA	$	18,410
C. Consolidated Leverage Ratio (Line I.A / Line I.B)	0.23
Maximum Permitted	2.75x to 1
II. Consolidated Fixed Charge Coverage Ratio (i)
A. Adjusted EBITDA
1. Consolidated Net Income	$	5,119
2. Consolidated Interest Charges	$	1,546
3. Provision for income taxes	$	3,265
4. Depreciation expenses	$	5,813
5. Amortization expenses	$	456
6. Non-recurring non-cash reductions of Consolidated Net Loss	$	2,211
7. Adjusted EBITDA (Lines II.A.1 + 2 + 3 + 4 + 5 + 6)	$	18,410
B. Cash payments for taxes	$	1,470
C. Maintenance Capital Expenditures	$	2,000
D. Consolidated Interest Charges (except non-cash interest)	$	533
E. Current portion of other long term debt (iv)	$	27
F. Consolidated Fixed Charge Coverage Ratio ((Line II.A.7 - Line II.B - Line II.C) / (Line II.D + Line II.E)	26.7
Minimum required	1.75x to 1

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Notes:

(i) Last Twelve Months (Most Recent Four Fiscal Quarters)

(ii) Allowable add backs pursuant to Credit Facility Agreement

(iii) Includes letters of credit of $1.8 million and excludes subordinated debt

(iv) Represents current portion of other long-term debt as of October 31, 2011