Exhibit 12
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AIRGAS, INC.
COMPUTATION OF FINANCIAL RATIOS
(in thousands, except ratios)
Fiscal Year Ended March 31,
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Quarter
Ended
Ratio of Earnings to Fixed Charges 1997 1998 1999 2000 2001 6/30/01
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EARNINGS COMPUTATION:
Add:
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Pretax income from continuing operations before
equity method earnings............................... $ 82,285 $118,948 $112,996 $106,731 $107,949 $32,784
Fixed charges........................................ 49,894 65,831 74,697 71,862 77,611 16,348
Amortization of capitalized interest................. -- -- -- -- -- --
Distributed income of equity investees............... 1,729 4,165 4,533 3,973 3,668 784
Share of pre-tax losses for which charges arising
from guarantees are included in fixed charges........ -- -- -- -- -- --
-------- -------- -------- -------- ------- --------
$133,908 $188,944 $192,226 $182,566 $189,228 $49,916
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Subract:
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Interest capitalized................................. -- -- -- -- -- --
Preferred dividend requirements of consolidated
subsidiaries......................................... -- -- -- -- -- --
Minority interest in pre-tax income of subsidiaries
that have not incurred fixed charges................. (958) (2,931) (7,042) (3,391) (2,260) (913)
-------- -------- -------- -------- ------- --------
Earnings for purposes of computation................. $132,950 $186,013 $185,184 $179,175 $186,968 $49,003
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FIXED CHARGES COMPUTATION:
Interest expensed.................................... $ 41,777 $ 55,403 $ 62,588 $ 58,712 $ 62,737 $12,637
Interest capitalized................................. -- -- -- -- -- --
Amortization of premiums or discounts related to debt 8,000 10,133 11,800 12,833 14,567 3,606
Amortization of capitalized expenses related to debt. 117 295 309 317 307 105
Estimate of the interest component of rent expense... -- -- -- -- -- --
Preferred dividend requirements of consolidated
subsidiaries......................................... -- -- -- -- -- --
-------- -------- -------- -------- ------- -------
Fixed charges for purposes of computation............ $ 49,894 $ 65,831 $ 74,697 $ 71,862 $ 77,611 $16,348
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RATIO OF EARNINGS TO FIXED CHARGES 2.66X 2.83X 2.48X 2.49X 2.41X 3.00X
Ratio of Adjusted EBITDA to Interest Expense
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ADJUSTED EBITDA COMPUTATION:
Adjusted EBITDA represents EBITDA (1) plus one-time losses and special charges
minus one-time gains and special recoveries. Adjusted EBITDA was calculated as
follows:
Fiscal Year Ended March 31,
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1999 2000 2001
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EBITDA....................................... $205,455 $200,012 $198,371
One-time losses.............................. -- 11,300 6,000
Special charges (recoveries)................. (1,000) (2,829) 3,643
One-time gains............................... (1,800) -- --
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Adjusted EBITDA.............................. $202,655 $208,483 $208,014
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(1) EBITDA represents total operating income plus depreciation, amortization
and cash dividends and fees from unconsolidated affiliates.
RATIO OF ADJUSTED EBITDA TO INTEREST EXPENSE COMPUTATION:
Fiscal Year Ended March 31,
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2001,
1999 2000 2001 As Adjusted
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Adjusted EBITDA............................ $202,655 $208,483 $208,014 $208,014
Interest expense (2)....................... 62,588 58,712 62,737 70,989
RATIO OF ADJUSTED EBITDA TO INTEREST EXPENSE
3.24x 3.55x 3.32x 2.93x
(2) For fiscal 2001, as adjusted, interest expense includes the net effect of
the Refinancing Transactions on interest expense of $8.3 million.
Ratio of Adjusted Debt to Adjusted EBITDA
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ADJUSTED DEBT COMPUTATION:
Adjusted debt represents total long-term debt as presented on the balance sheet
plus synthetic lease obligations and amounts drawn under the accounts receivable
securitization facility. Adjusted debt was calculated as follows:
March 31,
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2001,
1999 2000 2001 As Adjusted
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Long-term debt (1)............................... $867,486 $877,493 $693,609 $639,134
Synthetic lease obligations...................... 15,162 46,956 44,230 44,230
Accounts receivable securitization facility (2).. -- -- 73,200 137,300
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Adjusted debt.................................. $882,648 $924,449 $811,039 $820,664
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(1) Long-term debt, at March 31, 2001, as adjusted, represents long-term debt
less net proceeds from the second tranche of the accounts receivable
securitization facility, which closed in April 2001.
(2) Accounts receivable securitization facility, at March 31, 2001, as
adjusted, represents amounts drawn under the facility plus the proceeds
from the second tranche of the facility, which closed in April 2001.
ADJUSTED EBITDA COMPUTATION:
See calculation above.
RATIO OF ADJUSTED DEBT TO ADJUSTED EBITDA COMPUTATION:
Fiscal
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2001,
1999 2000 2001 As Adjusted
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Adjusted Debt...................................... $882,648 $924,449 $811,039 $820,664
Adjusted EBITDA.................................... 202,655 208,483 208,014 208,014
RATIO OF ADJUSTED DEBT TO ADJUSTED EBITDA 4.36x 4.43x 3.90x 3.95x