Exhibit 12
Elgin National Industries
Earnings to Fixed Charges Ratio Fiscal Year Ended December 31, Pro forma
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1993 1994 1995 1996 1997 1997
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(in thousands)
Fixed Charges:
Interest expense (net) $ 2,771 $6,270 $4,807 $ 3,340 $ 3,471 $ 9,132
Add back, interest income 137 143 146 323 511 511
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Interest expense 2,908 6,413 $4,953 $ 3,663 $ 3,982 $ 9,643
Amortization of finance costs 404 684 678 706 842 385
1/3 of lease cost 578 616 527 536 474 474
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Total fixed charges $ 3,890 $7,713 $6,158 $ 4,905 $ 5,298 $10,502
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Income before taxes from continuing operations $ 3,339 $1,438 ($1,045) $ 7,881 $ 8,113 $ 2,909
Add: fixed charges 3,890 7,713 6,158 4,905 5,298 10,502
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Total earnings used in ratio $ 7,229 $9,151 $5,113 $12,786 $13,411 $13,411
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Ratio of earnings to fixed charges 1.9x 1.2x 0.8x 2.6x 2.5X 1.3x
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Pro forma Ratios:
For the year ended December 31, 1997
Pro forma EBITDA to cash interest expense:
Cash interest
Interest on $85,000,000 senior notes @ 11.0% $ 9,350
Interest on notes payable 293
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Total cash interest $ 9,643
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EBITDA 12/31/97 $16,396
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Pro forma ratio of EBITDA to cash interest
expense 1.7x
Pro forma net debt to EBITDA:
Pro forma debt outstanding:
Senior notes $85,000
Notes payable 751
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Total debt 85,751
Less: cash 9,337
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Net debt 76,414
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EBITDA 12/31/97 $16,396
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Pro forma net debt to EBITDA: 4.7x
Pro forma debt to total capitalization:
Total debt $85,751
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Total capitalization:
Total debt $85,751
Redeemable preferred stock units 10,379
Redeemable preferred stock 2,847
Stockholder's deficit (31,860)
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Pro forma total capitalization $67,117
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Pro forma debt to total capitalization 1.3x