Debt Service Coverage

Debt Service Coverage. Is earnings after tax less Capitalized Product Development Costs plus interest and non cash plus or minus, as appropriate, any decrease or increase in Capitalized Product Development Costs for the specified period divided by Current Maturities Long Term Debt and capitalized leases, plus interest.

Debt Service Coverage. Means the ratio, measured at the end of each calendar quarter, of (i) the sum of (a) the consolidated net earnings of the twelve (12) month period immediately preceding each such quarter end date and (b) depreciation and amortization for the twelve (12) month period immediately preceding each such quarter end date and (c) non-cash charges (including but not limited ... to deferred taxes) for the twelve (12) month period immediately preceding each such quarter end date less (d) non-cash income for the twelve (12) month period immediately preceding each such quarter end date, divided by (ii) the aggregate principal portion of interest bearing consolidated indebtedness due within the following twelve (12) months, in each case as determined in accordance with United States generally accepted accounting principles and as reported on the most recently available quarterly financial statement of The Cronos Group. View More

Debt Service Coverage. Shall mean, with respect to any period, the ratio of (i) Borrower's and its Subsidiaries' net income after taxes for such period (excluding any after-tax gains or losses on the sale of assets (other than the sale of Inventory in the ordinary course of business) and excluding other after-tax extraordinary gains or losses), plus depreciation and amortization deducted in determining net income for such period, minus Capital Expenditures for such period not financed, minus any cash dividends paid... or accrued and cash distributions paid or accrued to shareholders for such period which were not accounted for in determining net income after taxes, minus any cash advances or loans made by Borrower during such period which were not accounted for in determining net income after taxes, and plus the after-tax increase in LIFO reserves, or minus the after tax decrease in LIFO reserves for such period, all on a consolidated basis, to (ii) Borrower's and its Subsidiaries' current principal maturities of indebtedness (including capitalized leases and loans from Affiliates) paid or scheduled to be paid during such period (except trade payables and revolving loans), plus any prepayments on indebtedness (including capitalized leases and loans from Affiliates) owed to any Person and paid during such period (except trade payables and revolving loans); provided, however, amounts paid or scheduled to be paid to Charles A. Vanella under that certain promissory note dated April 2, 2004, shall not be included in the denominator of the foregoing ratio to the extent paid in accordance with the Subordination Agreement of even date herewith between Lender, Borrower and Charles A. Vanella, and then only to the extent paid from proceeds of Tarpon Industries, Inc.'s underwritten initial public offering of its common shares registered with the United States Securities and Exchange Commission. View More