Attached files

file filename
EX-32 - SECTION 906 CERTIFICATION OF PEO AND PFO - Edgen Murray II, L.P.dex32.htm
EX-10.7 - EMPLOYMENT AGREEMENT - Edgen Murray II, L.P.dex107.htm
EX-31.1 - SECTION 302 CERTIFICATION OF PEO - Edgen Murray II, L.P.dex311.htm
EX-99.1 - SEPARATE FINANCIAL STATEMENTS - Edgen Murray II, L.P.dex991.htm
EX-31.2 - SECTION 302 CERTIFICATION OF PFO - Edgen Murray II, L.P.dex312.htm
EX-21.1 - LIST OF SUBSIDIARIES OF THE REGISTRANT - Edgen Murray II, L.P.dex211.htm
EX-10.5(A) - AMENDMENT TO AMENDED AND RESTATED EMPLOYMENT AGREEMENT - Edgen Murray II, L.P.dex105a.htm
10-K - FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2010 - Edgen Murray II, L.P.d10k.htm

Exhibit 12.1

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

The following table presents our earnings to fixed charges for the periods indicated:

 

     Year Ended December 31,  
     2006     2007     2008      2009     2010  

Earnings:

           

Income (loss) from continuing operations before taxes (a)

   $ 36,373      $ 1,545      $ 108,351       $ (43,262   $ (120,413

Interest expense (b)

     29,909        44,596        42,533         44,699        59,870   

Amortization of deferred financing costs and bond discount

     3,913        3,705        2,507         2,386        4,338   

Preference securities dividends requirements

     6,736        878        —           —          —     

Less: Preference securities dividends requirements

     (6,736     (878     —           —          —     
                                         

Total earnings

   $ 70,195      $ 49,846      $ 153,391       $ 3,823      $ (56,205

Fixed charges:

           

Interest expense (b)

   $ 29,909      $ 44,596      $ 42,533       $ 44,699        59,870   

Amortization of deferred financing costs and bond discount

     3,913        3,705        2,507         2,386        4,338   

Interest element on rent expense (c)

     733        810        1,011         1,245        1,277   

Preference securities dividends requirements (d)

     6,736        878        —           —          —     
                                         

Total fixed charges

   $ 41,291      $ 49,989      $ 46,051       $ 48,330      $ 65,485   

Ratio of earnings to fixed charges (e)

     1.70        1.00        3.33         —          —     
                                         

 

(a) For the year ended December 31, 2010, income (loss) from continuing operations before taxes includes a non-cash goodwill impairment charge of $62.8 million.
(b) For the year ended December 31, 2009, interest expense includes a non-recurring non-cash charge of $7.5 million associated with a deferred loss recognized on interest rate derivatives for which previously hedged cash flows no longer exists as a result of the repayment of the first and second lien term loans on December 23, 2009.
(c) Interest on operating leases estimated to be 33% of annual rental expense.
(d) Preferred partnership unit interest and dividend requirement grossed up for income taxes in deriving the pre-tax income required to pay dividends through May 11, 2007, the cancellation date of the preferred partnership units.
(e) For the years ended December 31, 2009 and 2010, earnings were insufficient by $44.5 million and $121.7 million, respectively, to cover fixed charges.