EX-12.1 54 a2150213zex-12_1.htm EXHIBIT 12.1

EXHIBIT 12.1

 

Warner Music Group
(Otherwise known as WMG Acquisition Corp.)
Computation of Ratio of Earnings to Fixed Charges
(Unaudited)

 

 

 

Historical

 

Pro Forma

 

 

 

Predecessor

 

Successor

 

Twelve

 

 

 

 

 

 

 

 

 

 

 

Ten Months

 

Three Months

 

Seven Months

 

Months

 

 

 

 

 

 

 

 

 

 

 

Ended

 

Ended

 

Ended

 

Ended

 

 

 

Years Ended November 30,

 

September 30,

 

February 28,

 

September 30,

 

September 30,

 

(Dollars in millions)

 

2000

 

2001

 

2002

 

2003

 

2003

 

2004

 

2004

 

2004

 

Loss before Income taxes

 

$

(365

)

$

(1,066

)

$

(1,570

)

$

(1,317

)

$

(268

)

$

(15

)

$

(74

)

$

(1,161

)

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges

 

74

 

89

 

78

 

65

 

50

 

8

 

99

 

151

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income as adjusted before income taxes

 

$

(291

)

$

(977

)

$

(1,492

)

$

(1,252

)

$

(218

)

$

(7

)

$

25

 

$

(1,010

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Charges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

$

56

 

$

71

 

$

59

 

$

47

 

$

36

 

$

4

 

$

91

 

135

 

Portion of rental expense representative of interest(1)

 

18

 

18

 

19

 

18

 

14

 

4

 

8

 

16

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total fixed charges

 

$

74

 

$

89

 

$

78

 

$

65

 

$

50

 

$

8

 

$

99

 

$

151

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deficiency in earnings over fixed charges

 

$

(365

)

$

(1,066

)

$

(1,570

)

$

(1,317

)

$

(268

)

$

(15

)

$

(74

)

$

(1,161

)

 

(1)   Estimated at 1/3 of total rent expense.