EXHIBIT 12.1
CHANDLER (U.S.A.), INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
YEAR ENDED DECEMBER 31
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1994 1995 1996 1997 1998
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(in thousands except for ratio)
COMPUTATION OF EARNINGS:
Income (loss) before income taxes $ (1,624) $ (1,546) $(2,097) $ 5,286 $ 786
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Fixed charges, net 321 371 554 808 1,070
Total earnings $ (1,303) $ (1,175) $(1,543) $ 6,094 $ 1,856
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(in thousands except for ratio)
COMPUTATION OF FIXED CHARGES:
Interest Expense $ 2 $ 52 $ 146 $ 442 $ 887
Amortization of debt issuance expense -- -- 45 3 17
Interest factor in rental expense 319 319 363 363 166
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Total fixed earnings $ 321 $ 371 $ 554 $ 808 $ 1,070
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Ratio of earnings to fixed charges (4.06) (3.17) (2.78) 7.54 1.73
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Proforma Ratio for Debt Refinancing:
Increase in interest expense relating to $ 1,838
proposed issuance of new debt
Decrease in interest expense on debt
presently outstanding that will be retired
with the proceeds of proposed offering
(799)
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Total adjustment to fixed charges $ 1,039
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Adjusted earnings $ 1,856
Adjusted fixed charges $ 2,109
Proforma ratio 0.88
Historical ratio 1.73
The ratio of earnings to fixed charges has been computed by dividing earnings
from operations available for fixed charges (income from operations before
income taxes adjusted for interest expense, amortization of debt issuance costs,
and one-third of rent expense) by fixed charges.
Fixed charges include interest costs (interest expense plus one-third of rent
expense) and amortization of debt issuance costs. The Company has assumed that
one-third of rent expense is representative of the interest factor.