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EXHIBIT 12
MILACRON INC.
CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES
(UNAUDITED)
Three Months
Year Ended December 31, Ended March 31,
--------------------------------------------------------------------- ---------------------------
1999 2000 2001 2002 2003 2003 2004
---- ---- ---- ---- ---- ---- ----
(In thousands)
Earnings:
Income (loss) before taxes $ 76,598(a) $68,259(b) $(51,108)(c) $(36,701)(d) $(111,840)(e) $(10,226)(f) $(14,862)(g)
Add fixed charges (see below) 24,373 26,726 27,917 30,038 29,588 7,141 9,463
-------- ------- -------- -------- --------- -------- --------
Earnings as defined $100,971 $94,985 $(23,191) $ (6,663) $ (82,252) $ (3,085) $ (5,399)
======== ======= ======== ======== ========= ======== ========
Fixed Charges:
Interest expense 20,873 22,426 24,184 25,471 24,855 5,958 8,263
Other adjustments(h) 3,500 4,300 3,733 4,567 4,733 1,183 1,200
-------- ------- -------- -------- --------- -------- --------
Fixed charges as defined $ 24,373 $26,726 $ 27,917 $ 30,038 $ 29,588 $ 7,141 $ 9,463
======== ======= ======== ======== ========= ======== ========
Ratio of earnings to fixed
charges 4.1 3.6 $(51,108)(c) $(36,701)(d) $(111,840)(e) $(10,226)(f) $(14,862)(g)
======== ======= ======== ======== ========= ======== ========
PRO FORMA REFINANCING TRANSACTION PRO FORMA RIGHTS OFFERING
Year Ended Three Months Year Ended Three Months
December 31, Ended March 31, December 31, Ended March 31,
------------ --------------- ------------ ---------------
2003 2004 2003 2004
--------- -------- --------- --------
(In thousands) (In thousands)
Earnings:
Income (loss) before taxes $(115,956) $(14,520) $(115,956) $(14,520)
Add fixed charges (see below) 35,135 9,355 35,135 9,355
--------- -------- --------- --------
Earnings as defined $ (80,821) $ (5,165) $ (80,821) $ (5,165)
========= ======== ========= ========
Fixed Charges:
Interest expense 30,402 8,155 30,402 8,155
Other adjustments(h) 4,733 1,200 4,733 1,200
--------- -------- --------- --------
Fixed charges as defined $ 35,135 $ 9,355 $ 35,135 $ 9,355
========= ======== ========= ========
Ratio of earnings to fixed charges $(115,956) $(14,520) $(115,956) $(14,520)
========= ======== ========= ========
(a) Includes restructuring costs of $7.2 million and a gain of $13.1
million on the sale of the European extrusion systems business.
(b) Includes restructuring costs of $1.4 million.
(c) Includes restructuring costs of $17.5 million.
(d) Includes restructuring costs of $13.9 million and a goodwill impairment
charge of $1.0 million.
(e) Includes restructuring costs of $27.1 million, a goodwill impairment
charge of $65.6 million and refinancing costs of $1.8 million.
(f) Includes restructuring costs of $6.0 million.
(g) Includes restructuring costs of $1.1 million and refinancing costs of
$6.4 million.
(h) Other adjustments represents a portion of rental expense representative
of an interest factor.
MILACRON INC.
CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES PLUS PREFERRED
STOCK DIVIDENDS
(UNAUDITED)
Three Months
Year Ended December 31, Ended March 31,
------------------------------------------------------------------ --------------------------
1999 2000 2001 2002 2003 2003 2004
---- ---- ---- ---- ---- ---- ----
(In thousands)
Earnings:
Income (loss) before taxes $ 76,598(a) $68,259(b) $(51,108)(c) $(36,701)(d) $(111,840)(e) $(10,226)(f) $(14,862)(g)
Add fixed charges (see below) 24,373 26,726 27,917 30,038 29,588 7,141 9,463
-------- ------- -------- -------- --------- -------- --------
Earnings as defined $100,971 $94,985 $(23,191) $ (6,663) $ (82,252) $ (3,085) $ (5,399)
======== ======= ======== ======== ========= ======== ========
Fixed Charges:
Interest expense 20,873 22,426 24,184 25,471 24,855 5,958 8,263
Other adjustments(h) 3,500 4,300 3,733 4,567 4,733 1,183 1,200
-------- ------- -------- -------- --------- -------- --------
Fixed charges as defined $ 24,373 $26,726 $ 27,917 $ 30,038 $ 29,588 $ 7,141 $ 9,463
======== ======= ======== ======== ========= ======== ========
Preferred Stock Dividends $ 240 $ 240 $ 240 $ 240 $ 240 $ 60 $ 60
Ratio of earnings to fixed charges
plus preferred stock dividends 4.1 3.5 $(51,348)(c) $(36,941)(d) $(112,080)(e) $(10,286)(f) $(14,922)(g)
======== ======= ======== ======== ========= ======== ========
PRO FORMA REFINANCING TRANSACTION PRO FORMA RIGHTS OFFERING
Year Ended Three Months Year Ended Three Months
December 31, Ended March 31, December 31, Ended March 31,
2003 2004 2003 2004
---- ---- ---- ----
(In thousands) (In thousands)
Earnings:
Income (loss) before taxes $(115,956) $(14,520) $(115,956) $(14,520)
Add fixed charges (see below) 35,135 9,355 35,135 9,355
--------- -------- --------- --------
Earnings as defined $ (80,821) $ (5,165) $ (80,821) $ (5,165)
========= ======== ========= ========
Fixed Charges:
Interest expense 30,402 8,155 30,402 8,155
Other adjustments(h) 4,733 1,200 4,733 1,200
--------- -------- --------- --------
Fixed charges as defined $ 35,135 $ 9,355 $ 35,135 $ 9,355
========= ======== ========= ========
Preferred Stock Dividends $ 6,240 $ 1,560 $ 4,440 $ 1,110
Ratio of earnings to fixed charges
plus preferred stock dividends $(122,196) $(16,080) $(120,396) $(15,630)
========= ======== ========= ========
(a) Includes restructuring costs of $7.2 million and a gain of $13.1
million on the sale of the European extrusion systems business.
(b) Includes restructuring costs of $1.4 million.
(c) Includes restructuring costs of $17.5 million.
(d) Includes restructuring costs of $13.9 million and a goodwill impairment
charge of $1.0 million.
(e) Includes restructuring costs of $27.1 million, a goodwill impairment
charge of $65.6 million and refinancing costs of $1.8 million.
(f) Includes restructuring costs of $6.0 million.
(g) Includes restructuring costs of $1.1 million and refinancing costs of
$6.4 million.
(h) Other adjustments represents a portion of rental expense representative
of an interest factor.
MILACRON INC.
CALCULATION OF CURRENT RATIO
(UNAUDITED)
Three Months
Year Ended December 31, Ended March 31,
---------------------------------------------------- -------------------
1999 2000 2001 2002 2003 2003 2004
---- ---- ---- ---- ---- ---- ----
(In thousands)
Current assets related to
continuing operations $440,924 $401,825 $411,786 $428,769 $364,133 $386,962 $387,320
-------- -------- -------- -------- -------- -------- --------
Current liabilities related to
continuing operations $454,892 $309,027 $244,971 $271,280 $352,260 $356,862 $378,149
-------- -------- -------- -------- -------- -------- --------
Ratio 0.97 1.30 1.68 1.58 1.03 1.08 1.02
======== ======== ======== ======== ======== ======== ========