EX-12.1 4 ex12_1.htm STATEMENT OF COMPUTATION OF RATIOS ex12_1.htm
 
EXHIBIT 12.1
 
STATEMENT OF COMPUTATION OF RATIOS

TITAN INTERNATIONAL, INC.
COMPUTATION OF EARNINGS TO FIXED CHARGES
(Amounts in thousands, except ratio of earnings to fixed charges)
 
   
Year Ended December 31,
  
   
2003
    
2004
    
2005
    
2006
    
2007
  
Earnings:
                              
(Loss) earnings before income taxes
   $ (33,668 )   $ 15,215     $ (2,885 )   $ 8,574     $ (3,884 )
Add:
                                        
Fixed Charges
     21,478       16,872       9,411       17,789       19,461  
Distributed income of equity investees
     212       256       914       0       0  
Deduct:
                                        
Earnings of equity investees
     2,398       1,278       2,938       0       0  
Loss on investments
     (2,707 )     0       0       0       0  
Debt termination expense
     0       (3,654 )     0       0       0  
Noncash convertible debt conversion charge
     0       0       (7,225 )     0       (13,376 )
Earnings available for fixed charges
   $ (11,669 )   $ 34,719     $ 11,727     $ 26,363     $ 28,953  
                                         
Fixed charges:
                                        
Interest expense
   $ 20,231     $ 16,159     $ 8,617     $ 17,001     $ 18,710  
Interest component of rental expense (a)
     1,247       713       794       788       751  
Total fixed charges
   $ 21,478     $ 16,872     $ 9,411     $ 17,789     $ 19,461  
                                         
Ratio of earnings to fixed charges (b)
     n/a       2.06       1.25       1.48       1.49  

(a)  
The interest component of rental expense was estimated to be one-fourth of lease rental expense.
(b)  
Earnings were insufficient to cover fixed charges for the year ended December 31, 2003, by $33.1 million.