EX-12.1 4 y68318a1exv12w1.txt COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES . . . Exhibit 12.1 MemberWorks Standalone COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (IN THOUSANDS)
FISCAL YEAR ENDED JUNE 30, --------------------------------------------------------------------- 2004 2003 2002 2001 2000 ----------------------------------------------------------------------- EARNINGS: Pre-tax income from continuing operations before adjustment for minority interests in consolidated 46,598 40,595 43,918 (26,757) 10,333 subsidiaries or income or loss from equity investees Less: Losses from Minority interest - - (450) (9,106) (2,027) Less: Equity investment income/(loss) - - - 83 19 ----------------------------------------------------------------------- TOTAL EARNINGS $ 46,598 $ 40,595 $ 43,468 $ (35,946) $ 8,287 ----------------------------------------------------------------------- FIXED CHARGES: Interest Expense 7,715 238 435 1,263 133 Estimated interest component of rent Expense (1) 2,260 2,557 2,169 2,517 1,308 ----------------------------------------------------------------------- TOTAL FIXED CHARGES $ 9,975 $ 2,795 $ 2,604 $ 3,780 $ 1,441 ----------------------------------------------------------------------- ----------------------------------------------------------------------- RATIO OF EARNINGS TO FIXED CHARGES 5.67 15.52 17.69 <0 6.75 =======================================================================
(1) The ratio of earnings to fixed charges is computed by dividing pre-tax income from continuing operations (before adjustment for minority interests in consolidated subsidiaries and loss from equity investees) by fixed charges. Fixed charges consist of interest charges, whether expensed or capitalized, and that portion of rental expense we believe to be representative of interest. For the year ended June 30, 2001, earnings were insufficient to cover fixed charges of $3.8 million.