Exhibit 12
MACDERMID, INCORPORATED
COMPUTATION OF FINANCIAL RATIOS
(in thousands, except ratios)
Fiscal Year Ended March 31,
1997 1998 1999 2000 2001 2001
--------- --------- --------- --------- --------- ---------
ACTUAL AS
ADJUSTED
EARNINGS COMPUTATION
Add
Pretax income from continuing operations
before adjustment for minority
interests in consolidated subsidiaries
or income or loss from equity
investees ............................. $ 46,917 $ 59,309 $ 83,467 $ 77,052 $ 54,937 $ 54,937
Fixed charges ............................... 18,273 24,676 25,937 36,139 34,668 45,089
Amortization of capitalized interest ........ -- -- -- -- -- --
Distributed income of equity investees ...... -- -- -- -- -- --
Your share of pre-tax losses of equity
investees for which charges arising
from guarantees are included in fixed
charges ............................... -- -- -- -- -- --
--------- --------- --------- --------- --------- ---------
$ 65,190 $ 83,985 $ 109,404 $ 113,191 $ 89,605 $ 100,026
========= ========= ========= ========= ========= =========
Subtract
Interest capitalized ........................ -- -- -- -- -- --
Preference security dividend requirements
of consolidated subsidiaries .......... -- -- -- -- -- --
Minority interest in pre-tax income of
subsidiaries that have not incurred
fixed charges ......................... -- -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Earnings for purposes of computation ........ $ 65,190 $ 83,985 $ 109,404 $ 113,191 $ 89,605 $ 100,026
========= ========= ========= ========= ========= =========
FIXED CHARGES COMPUTATION
Interest expensed ........................... $ 18,036 $ 22,237 $ 25,639 $ 31,043 $ 33,224 $ 43,645
Interest capitalized ........................ -- -- -- -- -- --
Amortized premiums, discounts and
capitalized expenses related to
indebtedness .......................... 237 2,439 298 5,096 1,444 1,444
Estimate of interest within rental expense .. -- -- -- -- -- --
Preference security dividend requirements of
consolidated subsidiaries ................... -- -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Fixed charges for purposes of computation ... $ 18,273 $ 24,676 $ 25,937 $ 36,139 $ 34,668 $ 45,089
========= ========= ========= ========= ========= =========
Preferred dividends ......................... $ 1,836 $ 309 -- -- -- --
--------- --------- --------- --------- --------- ---------
Fixed charges plus preferred dividends for
purposes of computation ............... $ 20,109 $ 24,985 $ 25,937 $ 36,139 $ 34,668 $ 45,089
========= ========= ========= ========= ========= =========
2
1997 1998 1999 2000 2001 2001
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ACTUAL AS
ADJUSTED
RATIO OF EARNINGS TO FIXED CHARGES .......... 3.57x 3.40x 4.22x 3.13x 2.58x 2.22x
RATIO OF EARNINGS TO FIXED CHARGES PLUS
PREFERRED DIVIDENDS .................. 3.24x 3.36x 4.22x 3.13x 2.58x 2.22x
EBITDA (before certain costs and expenses)(1) $ 143,951
As adjusted net interest expense(2) ......... 42,745
RATIO OF EBITDA (BEFORE CERTAIN COSTS AND
EXPENSES) TO AS ADJUSTED NET INTEREST
EXPENSE ............................... 3.37x
NET DEBT COMPUTATION
Total debt .................................. $ 482,884
Less cash and cash equivalents .............. (12,546)
---------
Net debt .................................... $ 470,338
=========
RATIO OF NET DEBT TO EBITDA (BEFORE CERTAIN
COSTS AND EXPENSES) ................... 3.27x
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(1) See footnote 2 to "Selected Consolidated Historical and As Adjusted
Financial Data" in the Registration Statement for further information regarding
this item.
(2) See footnote 6 to "Selected Consolidated Historical and As Adjusted
Financial Data" in the Registration Statement for further information regarding
this item.