EX-12.1 32 dex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

Exhibit 12.1

 

Education Management LLC

Computation of Ratio of Earnings to Fixed Charges (Unaudited)

(Dollars in millions)

 

     

Year ended

June 30,

2002

  

Year ended

June 30,

2003

  

Year ended

June 30,

2004

  

Year ended

June 30,

2005

   Predecessor         Successor  
                

July 1, 2005

through May 31,

2006

       

June 1, 2005

through June 30,

2006

 
                     

Computation of fixed charges

                     

Interest expense

     1.7      1.1      2.2      1.3      0.8          13.8  

Amortization of debt issuance costs

     0.8      1.0      0.5      0.4      1.3          0.6  

Portion of rental expense representative of interest

     11.4      14.2      16.9      19.0      18.5          1.9  
                                               

Total fixed charges

   $ 13.9    $ 16.3    $ 19.5    $ 20.7    $ 20.6        $ 16.3  
                                               

Computation of earnings

                     

Income (loss) before income taxes

   $ 67.4    $ 91.5    $ 130.5    $ 168.8    $ 174.0        $ (32.1 )

Fixed charges per above

     13.9      16.3      19.5      20.7      20.6          16.3  
                                               

Total earnings

   $ 81.2    $ 107.7    $ 150.1    $ 189.5    $ 194.6        $ (15.8 )

Ratio of earnings to fixed charges

     5.9      6.6      7.7      9.2      9.4          (1.0 )
                                               

 

*Earnings for the period June 1 through June 30, 2006 were inadequate to cover fixed charges by $32.1