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EXHIBIT 12
MILACRON INC.
CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES
(UNAUDITED)
Six Months
Year Ended December 31, Ended June 30,
--------------------------------------------------------------------- ---------------------------
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) $(26,338)(f) $(41,782)(g)
Add fixed charges (see below) 24,373 26,726 27,917 30,038 29,588 14,397 26,469
-------- ------- -------- -------- --------- -------- --------
Earnings as defined $100,971 $94,985 $(23,191) $ (6,663) $ (82,252) $(11,941) $(15,313)
======== ======= ======== ======== ========= ======== ========
Fixed Charges:
Interest expense 20,873 22,426 24,184 25,471 24,855 12,030 24,069
Other adjustments(h) 3,500 4,300 3,733 4,567 4,733 2,367 2,400
-------- ------- -------- -------- --------- -------- --------
Fixed charges as defined $ 24,373 $26,726 $ 27,917 $ 30,038 $ 29,588 $ 14,397 $ 26,469
======== ======= ======== ======== ========= ======== ========
Ratio of earnings to fixed
charges 4.1 3.6 $(51,108)(c) $(36,701)(d) $(111,840)(e) $(26,338)(f) $(41,782)(g)
======== ======= ======== ======== ========= ======== ========
PRO FORMA REFINANCING TRANSACTION PRO FORMA RIGHTS OFFERING
Year Ended Six Months Year Ended Six Months
December 31, Ended June 30, December 31, Ended June 30,
------------ -------------- ------------ --------------
2003 2004 2003 2004
--------- -------- --------- --------
(In thousands) (In thousands)
Earnings:
Income (loss) before taxes $(135,706) $(35,933) $(135,706) $(35,933)
Add fixed charges (see below) 41,735 24,303 41,735 24,303
--------- -------- --------- --------
Earnings as defined $ (93,971) $(11,630) $ (93,971) $(11,630)
========= ======== ========= ========
Fixed Charges:
Interest expense 37,002 21,903 37,002 21,903
Other adjustments(h) 4,733 2,400 4,733 2,400
--------- -------- --------- --------
Fixed charges as defined $ 41,735 $ 24,303 $ 41,735 $ 24,303
========= ======== ========= ========
Ratio of earnings to fixed charges $(135,706) $(35,933) $ 135,706 $(35,933)
========= ======== ========= ========
(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 $12.3 million.
(g) Includes restructuring costs of $2.8 million and refinancing costs of
$21.0 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)
Six Months
Year Ended December 31, Ended June 30,
------------------------------------------------------------------ --------------------------
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) $(26,338)(f) $(41,782)(g)
Add fixed charges (see below) 24,373 26,726 27,917 30,038 29,588 14,397 26,469
-------- ------- -------- -------- --------- -------- --------
Earnings as defined $100,971 $94,985 $(23,191) $ (6,663) $ (82,252) $(11,941) $(15,313)
======== ======= ======== ======== ========= ======== ========
Fixed Charges:
Interest expense 20,873 22,426 24,184 25,471 24,855 12,030 24,069
Other adjustments(h) 3,500 4,300 3,733 4,567 4,733 2,367 2,400
-------- ------- -------- -------- --------- -------- --------
Fixed charges as defined $ 24,373 $26,726 $ 27,917 $ 30,038 $ 29,588 $ 14,397 $ 26,469
======== ======= ======== ======== ========= ======== ========
Preferred Stock Dividends $ 240 $ 240 $ 240 $ 240 $ 240 $ 120 $ 120
Ratio of earnings to fixed charges
plus preferred stock dividends 4.1 3.5 $(51,348)(c) $(36,941)(d) $(112,080)(e) $(26,458)(f) $(41,902)(g)
======== ======= ======== ======== ========= ======== ========
PRO FORMA REFINANCING TRANSACTION PRO FORMA RIGHTS OFFERING
Year Ended Six Months Year Ended Six Months
December 31, Ended June 30, December 31, Ended June 30,
2003 2004 2003 2004
---- ---- ---- ----
(In thousands) (In thousands)
Earnings:
Income (loss) before taxes $(135,706) $(35,933) $(135,706) $(35,933)
Add fixed charges (see below) 41,735 24,303 41,735 24,303
--------- -------- --------- --------
Earnings as defined $ (93,971) $(11,630) $ (93,971) $(11,630)
========= ======== ========= ========
Fixed Charges:
Interest expense 37,002 21,903 37,002 21,903
Other adjustments(h) 4,733 2,400 4,733 2,400
--------- -------- --------- --------
Fixed charges as defined $ 41,735 $ 24,303 $ 41,735 $ 24,303
========= ======== ========= ========
Preferred Stock Dividends $ 6,240 $ 3,120 $ 4,440 $ 2,220
Ratio of earnings to fixed charges
plus preferred stock dividends $(141,946) $(39,053) $(140,146) $(38,153)
========= ======== ========= ========
(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 $12.3 million.
(g) Includes restructuring costs of $2.8 million and refinancing costs of
$21.0 million.
(h) Other adjustments represents a portion of rental expense representative
of an interest factor.
MILACRON INC.
CALCULATION OF CURRENT RATIO
(UNAUDITED)
Six Months
Year Ended December 31, Ended June 30,
---------------------------------------------------- -------------------
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 $369,205 $347,708
-------- -------- -------- -------- -------- -------- --------
Current liabilities related to
continuing operations $454,892 $309,027 $244,971 $271,280 $352,260 $344,170 $196,084
-------- -------- -------- -------- -------- -------- --------
Ratio 0.97 1.30 1.68 1.58 1.03 1.07 1.77
======== ======== ======== ======== ======== ======== ========