EXHIBIT 12.1
MTL INC.
COMPUTATION OF THE RATIO OF EARNINGS TO FIXED CHARGES
9 MONTHS 9 MONTHS
ENDING ENDING
1993 1994 1995 1996 1997 9/30/98 9/30/97
---------- ----------- ----------- ----------- ----------- ----------- -----------
EARNINGS:
Pre-tax income
(loss).............. $7,037,000 $10,545,000 $13,209,788 $14,940,309 $17,879,586 $(6,645,000) $13,610,000
Add:
Total Fixed
charges (as
calculated
below).......... 6,587,305 4,744,174 3,881,969 4,758,072 4,726,553 11,063,438 3,291,153
Amortization
expense of
previously
capitalized
interest........ -- -- -- -- -- -- --
Less:
Interest
capitalized
during the
period.......... -- -- -- -- -- -- --
---------- ----------- ----------- ----------- ----------- ----------- -----------
Earnings.......... 13,624,305 15,289,174 17,091,757 19,698,381 22,606,139 4,418,438 16,901,153
FIXED CHARGES:
Rent expense under
operating
leases X 1/3 of
Rent expenses..... 1,970,427 1,332,306 958,162 2,209,532 2,821,179 887,445 1,637,782
Interest portion
of rent expense... 656,809 444,102 319,387 736,511 940,393 295,815 545,927
Interest cost
(expensed and
capitalized)...... 5,760,500 4,222,912 3,543,867 3,959,669 3,706,137 10,307,234 2,675,345
Proforma interest
cost:
Interest cost
(on new debt)...
Fee for unused
portion of
Revolving Credit
Facility........
Debt amortization
expense........... 169,996 77,160 18,715 61,892 80,023 460,389 69,881
---------- ----------- ----------- ----------- ----------- ----------- -----------
TOTAL FIXED
CHARGES........... 6,587,305 4,744,174 3,881,969 4,758,072 4,726,553 11,063,438 3,291,153
RATIO OF EARNINGS TO
FIXED CHARGES(1)(2).. 2.07 3.22 4.40 4.14 4.78 -- 5.14
PROFORMA
---------------------------
12 MONTHS 9 MONTHS
ENDING ENDING
1997 9/30/98
------------- -------------
EARNINGS:
Pre-tax income
(loss).............. $(16,300,000) $(18,300,000)
Add:
Total Fixed
charges (as
calculated
below).......... 40,440,393 30,182,482
Amortization
expense of
previously
capitalized
interest........ -- --
Less:
Interest
capitalized
during the
period.......... -- --
------------- -------------
Earnings.......... 24,140,393 11,682,482
FIXED CHARGES:
Rent expense under
operating
leases X 1/3 of
Rent expenses..... 2,821,179 1,747,445
Interest portion
of rent expense... 940,393 582,482
Interest cost
(expensed and
capitalized)......
Proforma interest
cost:
Interest cost
(on new debt)... 37,700,000 28,300,000
Fee for unused
portion of
Revolving Credit
Facility........ 300,000 200,000
Debt amortization
expense........... 1,500,000 1,100,000
------------- -------------
TOTAL FIXED
CHARGES........... 40,440,393 30,182,482
RATIO OF EARNINGS TO
FIXED CHARGES(1)(2).. -- --
- ----
(1) Earnings were insufficient to cover fixed charges by $6.6 million for the
nine months ended September 30, 1998 and $16.1 million and $18.3 million
for the pro forma year ended December 31, 1997 and nine months ended
September 30, 1998, respectively.
(2) During the six months ended September 30, 1998, the Company incurred a
non-recurring expense of $13.4 million related to the vesting of options
of MTL stock in connection with the MTL Transactions. Excluding this
expense, the ratio of earnings to fixed charges would have been 1.6x.