1
EXHIBIT 12.1
SIMCALA, INC.
STATEMENT SETTING FORTH COMPUTATION OF
RATIO TO EARNINGS OF FIXED CHARGES
FOR THE YEARS ENDED DECEMBER 31, 1993 AND 1994 AND FOR THE
PERIOD FROM JANUARY 1, 1995 TO FEBRUARY 10, 1995 (SIMETCO, INC.) AND
FOR THE PERIOD FROM FEBRUARY 10, 1995 TO DECEMBER 31, 1995, FOR THE
YEARS ENDED DECEMBER 31, 1996 AND 1997, FOR THE
THREE MONTHS ENDED MARCH 31, 1997 AND 1998 (PREDECESSOR),
FOR THE PRO FORMA AS ADJUSTED YEAR ENDING DECEMBER 31, 1997 AND
FOR THE PRO FORMA AS ADJUSTED THREE MONTHS ENDING MARCH 31, 1998 (COMPANY)
(DOLLARS IN THOUSANDS)
SIMETCO, INC. PREDECESSOR
------------------------------- -------------------------------------
PERIOD FROM
PERIOD FROM FEBRUARY 10,
JANUARY 1, 1995 (DATE OF
YEAR ENDED 1995 TO INCEPTION) TO YEAR ENDED
DECEMBER 31, FEBRUARY 10, DECEMBER 31, DECEMBER 31,
----------------- -------------------
1993 1994 1995 1995 1996 1997
-------- ------- ------------ ------------- ------- --------
Earnings available for Fixed Charges:
Earnings (loss) before provision for income taxes $ (2,728) $(1,943) $ 290 $ (3,219) $ 6,619 $ 9,885
Fixed charges - see below 776 800 72 1,250 1,713 2,001
Less capitalized interest (102) (66)
------- ------- ------------ ------------- ------- --------
Total $(1,952) $(1,143) $ 362 $ (2,071) $ 8,266 $ 11,886
======= ======= ============ ============= ======= ========
Fixed Charges:
Interest expense $ 776 $ 800 $ 72 $ 1,111 $ 1,511 $ 1,710
Capitalized interest 102 66
Amortization of debt issuance costs 60 218
Rental expense 37 76 73
------- ------- ------------ ------------- ------- --------
Total $ 776 $ 800 $ 72 $ 1,250 $ 1,713 $ 2,001
======= ======= ============ ============= ======= ========
Ratio of Earnings to Fixed Charges (2.5) (1.4) 5.0 (1.7) 4.8 5.9
======= ======= ============ ============= ======= ========
Deficiency $(2,728) $(1,943) $ (3,321)
======= ======= =============
PREDECESSOR COMPANY
---------------------------- ----------------------------
PRO FORMA
(UNAUDITED) PRO FORMA AS ADJUSTED
THREE MONTHS THREE MONTHS AS ADJUSTED THREE MONTHS
ENDED ENDED YEAR ENDING ENDING
MARCH 31, MARCH 31, DECEMBER 31, MARCH 31,
1997 1998 1997 1998
---------------------------- ----------------------------
Earnings available for Fixed Charges:
Earnings (loss) before provision for income taxes $ 2,363 $ (681) $ (522) (3,395)
Fixed charges - see below 434 339 8,366 2,099
Less capitalized interest (20) (20)
---------------------------- ----------------------------
Total $ 2,797 $ (362) $ 7,844 $ (1,316)
============================ ============================
Fixed Charges:
Interest expense $ 361 $ 300 7,699 1,925
Capitalized interest 20 20
Amortization of debt issuance costs 55 14 594 149
Rental expense 18 5 73 5
---------------------------- ----------------------------
Total $ 434 $ 339 $ 8,366 $ 2,099
============================ ============================
Ratio of Earnings to Fixed Charges 6.46 (1.07) 0.94 (0.63)
============================ ============================
Deficiency $ (701) $ (522) $ (3,415)
============ ============================
2
SIMCALA, INC.
STATEMENT SETTING FORTH COMPUTATION OF
RATIO OF EBITDA TO CASH INTEREST EXPENSE
FOR THE PERIOD FROM FEBRUARY 10, 1995 TO DECEMBER 31, 1995, FOR THE
YEARS ENDED DECEMBER 31, 1996 AND 1997, FOR THE
THREE MONTHS ENDED MARCH 31, 1997 AND 1998 (PREDECESSOR),
FOR THE PRO FORMA AS ADJUSTED YEAR ENDING DECEMBER 31, 1997 AND
FOR THE PRO FORMA AS ADJUSTED THREE MONTHS ENDING MARCH 31, 1998 (COMPANY)
(DOLLARS IN THOUSANDS)
PREDECESSOR
--------------------------------------
PERIOD FROM
FEBRUARY 10,
1995 (DATE OF
INCEPTION) TO YEAR ENDED
DECEMBER 31, DECEMBER 31,
------------------
1995 1996 1997
------------- ------- -------
EBITDA:
Earnings (loss) from continued operations
before cumulative effect of change in
accounting principle $ (3,219) $ 5,450 $ 6,371
Interest expense 1,111 1,511 1,710
Income taxes - 1,169 3,514
Depreciation and amortization 1,070 1,593 2,167
============= ======= =======
Total $ (1,038) $ 9,723 $13,762
============= ======= =======
Cash interest expense $ 929 $ 1,238 $ 1,560
Ratio of EBITDA to cash interest expense (1.1) 7.9 8.8
============= ======= =======
Deficiency $ (1,967)
=============
PREDECESSOR COMPANY
---------------------------- ----------------------------
PRO FORMA
(UNAUDITED) PRO FORMA AS ADJUSTED
THREE MONTHS THREE MONTHS AS ADJUSTED THREE MONTHS
ENDED ENDED YEAR ENDING ENDING
MARCH 31, MARCH 31, DECEMBER 31, MARCH 31,
1997 1998 1997 1998
---------------------------- ----------------------------
EBITDA:
Earnings (loss) from continued operations
before cumulative effect of change in
accounting principle $ 1,570 $ (581) $ (891) $ (2,377)
Interest expense 415 314 8,293 2,073
Income taxes 793 (100) 369 (1,018)
Depreciation and amortization 424 471 5,991 1,427
============ ============ ============================
Total $ 3,202 $ 104 $ 13,762 $ 105
============ ============ ============================
Cash interest expense $ 421 $ 161 $ 8,143 $ 1,920
Ratio of EBITDA to cash interest expense 7.6 0.6 1.7 0.1
============ ============ ============================
Deficiency $ (57) $ (1,815)
============ ============
3
SIMCALA, INC.
STATEMENT SETTING FORTH COMPUTATION OF
RATIO OF EBITDA MARGIN
FOR THE PERIOD FROM FEBRUARY 10, 1995 TO DECEMBER 31, 1995, FOR THE
YEARS ENDED DECEMBER 31, 1996 AND 1997, FOR THE
THREE MONTHS ENDED MARCH 31, 1997 AND 1998 (PREDECESSOR)
FOR THE PRO FORMA AS ADJUSTED YEAR ENDING DECEMBER 31, 1997 AND
FOR THE PRO FORMA AS ADJUSTED THREE MONTHS ENDING MARCH 31, 1998 (COMPANY)
(DOLLARS IN THOUSANDS)
PREDECESSOR
--------------------------------------
PERIOD FROM
FEBRUARY 10,
1995 (DATE OF
INCEPTION) TO YEAR ENDED
DECEMBER 31, DECEMBER 31,
------------------
1995 1996 1997
------------- ------- -------
EBITDA:
Earnings (loss) from continued operations
before cumulative effect of change in
accounting principle $ (3,219) $ 5,450 $ 6,371
Interest expense 1,111 1,511 1,710
Income taxes 0 1,169 3,514
Depreciation and amortization 1,070 1,593 2,167
--------------------------------------
Total $ (1,038) $ 9,723 $13,762
======================================
Net Sales $ 31,523 $52,407 $62,184
Ratio (3.3%) 18.6% 22.1%
======================================
PREDECESSOR COMPANY
---------------------------- ----------------------------
PRO FORMA
(UNAUDITED) PRO FORMA AS ADJUSTED
THREE MONTHS THREE MONTHS AS ADJUSTED THREE MONTHS
ENDED ENDED YEAR ENDING ENDING
MARCH 31, MARCH 31, DECEMBER 31, MARCH 31,
1997 1998 1997 1998
---------------------------- ----------------------------
EBITDA:
Earnings (loss) from continued operations
before cumulative effect of change in
accounting principle $ 1,570 $ (581) $ (891) $ (2,377)
Interest expense 415 314 8,293 2,073
Income taxes 793 (100) 369 (1,018)
Depreciation and amortization 424 471 5,991 1,427
------------ ------------- ----------------------------
Total $ 3,202 $ 104 $ 13,762 $ 105
============ ============ ============================
Net Sales $ 15,655 $ 14,854 $ 62,184 14,854
Ratio 20.5% 0.7% 22.1% 0.7%
============================ ============================
4
SIMCALA, INC.
STATEMENT SETTING FORTH COMPUTATION OF
RATIO OF NET DEBT TO PRO FORMA EBITDA
FOR THE PRO FORMA AS ADJUSTED YEAR ENDING DECEMBER 31, 1997 AND
FOR THE PRO FORMA AS ADJUSTED THREE MONTHS ENDING MARCH 31, 1998
(COMPANY)
(DOLLARS IN THOUSANDS)
Company
-------------------------------
Pro Forma
Pro Forma As Adjusted
As Adjusted Three Months
Year Ending Ending
December 31, March 31,
1997 1998
-------------------------------
Net Debt:
Long-term debt at March 31, 1998 $ 81,083 $ 81,083
Current portion - debt at March 31, 1998 90 90
Less: cash and cash equivalents at March 31, 1998 (15,796) (15,796)
-------------------------------
65,377 65,377
Pro Forma EBITDA $ 13,762 $ 105
Ratio 4.75 622.6
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