1
EXHIBIT 12
BLOUNT INTERNATIONAL, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(IN MILLIONS)
FOR THE YEARS
ENDED THE LAST FOR THE FOR THE FOR THE FOR THE FOR THE
DAY OF FEBRUARY 10 MONTHS 12 MONTHS 12 MONTHS 3 MONTHS 3 MONTHS
--------------------- ENDED ENDED ENDED ENDED ENDED
1994 1995 1996 12/31/96(1) 12/31/96 12/31/97 3/31/97 3/31/98
----- ----- ----- ----------- ----------- --------- -------- --------
(Unaudited) (Unaudited)
(Dollar amounts in millions)
Income from continuing operations
before income taxes.................. $33.9 $67.4 $83.7 $69.6 $85.4 $ 93.7 $21.5 $22.3
Amortization of capitalized interest... 0.1 0.1 0.1 0.1 0.1 0.1 -- --
Amortization of debt expense........... 0.4 0.5 0.3 0.2 0.3 0.3 0.1 0.1
Interest expense....................... 10.9 10.6 10.5 7.7 9.6 9.2 2.1 3.0
Interest portion of rentals............ 1.9 1.7 2.1 1.7 2.0 1.6 0.5 0.4
----- ----- ----- ----- ----- ------ ----- -----
Earnings available for fixed
charges............................ $47.2 $80.3 $96.7 $79.3 $97.4 $104.9 $24.2 $25.8
===== ===== ===== ===== ===== ====== ===== =====
Interest expense....................... $10.9 $10.6 $10.5 $ 7.7 $ 9.6 $ 9.2 2.1 $ 3.0
Amortization of capitalized interest... 0.1 0.1 0.1 0.1 0.1 0.1 -- --
Amortization of debt expense........... 0.4 0.5 0.3 0.2 0.3 0.3 0.1 0.1
Capitalized interest................... 0.1 -- -- -- -- 0.2 -- --
Interest portion of rentals............ 1.9 1.7 2.1 1.7 2.0 1.6 0.5 0.4
----- ----- ----- ----- ----- ------ ----- -----
Fixed charges........................ $13.4 $12.9 $13.0 $ 9.7 $12.0 $ 11.4 $ 2.7 $ 3.5
===== ===== ===== ===== ===== ====== ===== =====
Ratio of earnings to fixed charges... 3.5x 6.2x 7.4x 8.2x 8.1x 9.2x 8.9x 7.4x
Pro Forma ratio of earnings to fixed charges
FOR THE FOR THE FOR THE
10 MONTHS 12 MONTHS 3 MONTHS
ENDED ENDED ENDED
12/31/96(1) 12/31/97 3/31/98
----------- --------- -----------
(Unaudited)
Income from continuing operations before income taxes.... $70.7 $ 95.0 $22.5
Amortization of capitalized interest..................... 0.1 0.1 --
Amortization of debt expense............................. 0.2 0.2 0.1
Interest expense......................................... 6.6 8.0 2.8
Interest portion of rentals.............................. 1.7 1.6 0.4
----- ------ -----
Earnings available for fixed charges................ $79.3 $104.9 $25.8
===== ====== =====
Interest expense......................................... $ 6.6 $ 8.0 $ 2.8
Amortization of capitalized interest..................... 0.1 0.1 --
Amortization of debt expense............................. 0.2 0.2 0.1
Capitalized interest..................................... -- 0.1 --
Interest portion of rentals.............................. 1.7 1.6 0.4
----- ------ -----
Fixed charges....................................... $ 8.6 $ 10.0 $ 3.3
===== ====== =====
Ratio of earnings to fixed charges....................... 9.2x 10.5x 7.8x
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(1) In April 1996, Blount changed its fiscal year from one ending on the last
day of February to one ending on December 31.