Flow International 10-Q 2013 Q2 Quarterly report

Exhibit 99.1

DEBT COVENANT COMPLIANCE

As of October 31, 2012

Adjusted EBITDA:

(in 000s)	LTM (i)		Q3 FY12		Q4 FY12			Q1 FY13		Q2 FY13
Net Income	$	10,290	$	3,316	$	2,643		$	2,221	$	2,110
Add Back:
Depreciation and Amortization	5,896		1,572		1,485			1,426		1,413
Income Tax Provision (Benefit)	3,867		2,041		(1,003		)	1,477		1,352
Interest Charges	1,157		317		175			340		325
Non-Cash Charges (ii)	4,788		868		2,225			927		768
Adjusted EBITDA	$	25,998	$	8,114	$	5,525		$	6,391	$	5,968
I. Consolidated Leverage Ratio
A. Total Long-Term Obligations and Notes Payable (iii)	$	14,641
B. Adjusted EBITDA	$	25,998
C. Consolidated Leverage Ratio (Line I.A / Line I.B)	0.56
Maximum Permitted	2.75x to 1
II. Consolidated Fixed Charge Coverage Ratio
A. Adjusted EBITDA
1. Consolidated Net Income	$	10,290
2. Consolidated Interest Charges	$	1,157
3. Provision for income taxes	$	3,867
4. Depreciation expenses	$	5,346
5. Amortization expenses	$	550
6. Non-recurring non-cash reductions of Consolidated Net Loss	$	4,788
7. Adjusted EBITDA (Lines II.A.1 + 2 + 3 + 4 + 5 + 6)	$	25,998
B. Cash payments for taxes	$	2,541
C. Maintenance Capital Expenditures	$	2,000
D. Consolidated Interest Charges (except certain non-cash interest)	$	442
E. Current portion of other long term debt (iv)	$	20
F. Consolidated Fixed Charge Coverage Ratio ((Line II.A.7 - Line II.B - Line II.C) / (Line II.D + Line II.E)	46.4
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 $4.6 million and subordinated debt

(iv) Represents current portion of other long-term debt as of October 31, 2012 and excludes subordinated debt