EXHIBIT 12.1
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in thousands, except ratio data)
|
| | | | | | | | | | | | | | | | | | | |
| | Years Ended July 31, |
| | 2014 | | 2013 | | 2012 | | 2011 | | 2010 |
| Earnings: | | | | | |
| (Loss) earnings from continuing operations | $ | (53,109 | ) | | $ | (95,674 | ) | | $ | 140,655 |
| | $ | 127,624 |
| | $ | 94,370 |
|
| Add back: | | | | | | | | | |
| Fixed charges less interest capitalized | 15,211 |
| | 17,592 |
| | 19,888 |
| | 23,128 |
| | 22,107 |
|
| Less: | | | | | | | | | |
| Preferential stock dividends and premium on redemption of preferred stock | — |
| | — |
| | — |
| | — |
| | — |
|
| Total (loss) earnings | $ | (37,898 | ) | | $ | (78,082 | ) | | $ | 160,543 |
| | $ | 150,752 |
| | $ | 116,477 |
|
| | | | | | | | | | |
| Fixed Charges: | | | | | | | | | |
| Interest, capitalized and expensed | $ | 13,879 |
| | $ | 16,222 |
| | $ | 18,407 |
| | $ | 21,777 |
| | $ | 20,843 |
|
| Amortization of debt expense | 421 |
| | 419 |
| | 683 |
| | 347 |
| | 379 |
|
| Interest portion of rent expense | 911 |
| | 951 |
| | 798 |
| | 1,004 |
| | 885 |
|
| Preferential stock dividends and premium on redemption of preferred stock | — |
| | — |
| | — |
| | — |
| | — |
|
| Total fixed charges | $ | 15,211 |
| | $ | 17,592 |
| | $ | 19,888 |
| | $ | 23,128 |
| | $ | 22,107 |
|
| | | | | | | | | | |
| Ratio of Earnings to Fixed Charges | (1 | ) | | (2 | ) | | 8.1x |
| | 6.5x |
| | 5.3x |
|
| |
| (1) | Due to Brady Corporation's loss for the year ended July 31, 2014, the Company did not have earnings adequate to cover fixed charges, and the ratio of earnings to fixed charges therefore has not been presented for that period. The coverage deficiency necessary for the ratio of earnings to fixed charges to equal 1.0x was $53.1 million for the year ended July 31, 2014. The non-cash deficiency was primarily a result of a non-cash intangible asset impairment charge of $148.6 million recognized during the fourth quarter of fiscal 2014. |
| |
| (2) | Due to Brady Corporation's loss for the year ended July 31, 2013, the Company did not have earnings adequate to cover fixed charges, and the ratio of earnings to fixed charges therefore has not been presented for that period. The coverage deficiency necessary for the ratio of earnings to fixed charges to equal 1.0x was $95.7 million for the year ended July 31, 2013. The non-cash deficiency was primarily a result of a non-cash intangible asset impairment charge of $204.4 million recognized during the fourth quarter of fiscal 2013. |
