Exhibit 12
Delco Remy International, Inc.
Statement of Computation of Ratio of Earnings to Fixed Charges
Fiscal Year Ended July 31
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1996 1997 1998 1999 2000
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Earnings:
Income (1oss) from continuing operations
before income taxes (benefit), minority
interest in income of subsidiaries, income
(loss) from unconsolidated joint ventures
preferred dividend requirement of subsidiary,
deemed dividend on preferred stock
conversion and extraordinary item $ 13,312 $(10,737) $ (134) $ 43,301 $ 30,972
Fixed charges 31,346 42,842 46,759 48,103 51,796
Less preferred stock dividend requirement (2,527) (2,747) (1,054) - -
Less deemed dividend on preferred stock
conversion - - (2,678) - -
Less interest capitalized during period (393) - - - -
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Total earnings $ 41,738 $ 29,358 $ 42,893 $ 91,404 $ 82,768
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Fixed Charges:
Interest expense $ 27,367 $ 38,774 $ 40,291 $ 45,505 $ 48,766
Interest capitalized during period 393 - - - -
Preferred stock dividend requirement 2,527 2,747 1,054 - -
Deemed dividend on preferred stock
conversion - - 2,678 - -
Implicit interest in rent expense 1,059 1,321 2,736 2,598 3,030
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Total Fixed Charges $ 31,346 $ 42,842 $ 46,759 $ 48,103 $ 51,796
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Ratio of Earnings to Fixed Charges (a) 1.3x - - 1.9x 1.6x
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Pro Forma
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Three Months Fiscal Year Three Months
Ended March 31, Ended July 31, Ended
2001 2000 2000 March 31, 2001
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Earnings:
Income (1oss) from continuing operations
before income taxes (benefit), minority
interest in income of subsidiaries, income
(loss) from unconsolidated joint ventures
preferred dividend requirement of subsidiary,
deemed dividend on preferred stock
conversion and extraordinary item $ 477 $ 21,014 $ 28,868 $ (1,093)
Fixed charges 14,044 11,853 61,678 15,614
Less preferred stock dividend requirement - - - -
Less deemed dividend on preferred stock
conversion - - - -
Less interest capitalized during period - - - -
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Total earnings $ 14,521 $ 32,867 $ 90,546 $ 14,521
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Fixed Charges:
Interest expense $ 13,294 $ 11,103 $ 58,648 $ 14,864
Interest capitalized during period - - - -
Preferred stock dividend requirement - - - -
Deemed dividend on preferred stock
conversion - - - -
Implicit interest in rent expense 750 750 3,030 750
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Total Fixed Charges $ 14,044 $ 11,853 $ 61,678 $ 15,614
Ratio of Earnings to Fixed Charges (a) 1.0x 2.8x 1.5x -
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(a) The deficiency of earnings to fixed charges was $13.5 million and $3.9
million in fiscal-years 1997 and 1998, respectively. Excluding non-
recurring charges, the ratio of earnings to fixed charges would have been
1.5x in 1997 and 1.5x in 1998. On a pro forma basis, the deficiency of
earnings to fixed charges would have been $1.l million in the three months
ended March 31, 2001. Excluding the tender offer and merger expenses, the
ratio of earnings to fixed charges would have been 1.2x on a pro forma
basis.