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EXHIBIT 12.1
TOWER AUTOMOTIVE, INC.
STATEMENT OF COMPUTATION OF
RATIO OF EARNINGS TO FIXED CHARGES
YEAR ENDED DECEMBER 31, SIX MONTHS ENDED JUNE 30,
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1998 1999 2000 2001 2002 2002 2003
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Earnings:
Income (loss) before income taxes,
extraordinary item and cumulative effect
of accounting change 135,353 187,166 7,037 (344,326) 21,818 (18,373) 21,243
Net fixed charges (1) 52,217 47,918 80,818 101,133 90,361 44,648 45,047
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Total earnings 187,570 235,084 87,855 (243,193) 112,179 26,275 66,290
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Fixed charges:
Interest expense, net (per FS) 42,506 39,491 71,162 80,319 69,197 35,207 34,852
Capitalized interest 3,732 6,926 12,896 14,617 6,014 2,883 3,624
Interest factor of rental expense (2) 7,352 5,986 7,088 18,207 18,822 9,441 10,195
Amortization of debt expense 2,359 2,441 2,568 2,607 2,342
Dividends on trust preferred securities 9,800 17,466 17,466 17,466 17,466 2,838 2,882
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Total fixed charges 65,749 72,310 111,180 133,216 113,841 50,369 51,553
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Earnings to fixed charges 2.9 3.3 (3) (4) (5) 0.5 1.3
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(1) Net fixed charges represent total fixed charges less capitalized interest
and dividends on trust preferred securities.
(2) The interest factor of rental expense has been calculated using the rate
implied pursuant to the terms of the rental agreements. For the periods
presented, the interest factor ranged from 30% to 55% of total rental expense.
(3) Due to the restructuring and asset impairment charge of $141.3 million,
earnings were inadequate to cover fixed charges by $23.3 million. Excluding the
restructuring and asset impairment charge, the ratio of earnings to fixed
charges would have been 2.1x for the year ended December 31, 2000.
(4) Due to the restructuring and asset impairment charge of $383.7 million,
earnings were inadequate to cover fixed charges by $376.4 million. Excluding the
restructuring and asset impairment charge, the ratio of earnings to fixed
charges would have been 1.1x for the year ended December 31, 2001.
(5) Due to the restructuring and asset impairment charge of $61.1 million,
earnings were inadequate to cover fixed charges by $1.6 million. Excluding the
restructuring and asset impairment charge, the ratio of earnings to fixed
charges would have been 1.5x for the year ended December 31, 2002.
(6) Due to the restructuring and asset impairment charge of $75.4 million,
earnings were inadequate to cover fixed charges by $57.7 million. Excluding the
restructuring and asset impairment charge, the ratio of earnings to fixed
charges would have been 1.6x for the three months ended March 31, 2002.