EX-12.1 13 dex121.txt STATEMENT RE COMPUTATION OF RATIOS Exhibit 12.1 KANSAS CITY SOUTHERN INDUSTRIES, INC. AND SUBSIDIARY COMPANIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
As of December 31st As of March 31st -------------------------------------------------------------- ----------------------- 1997 1998 1999 2000 2001 2001 2002 ---------- ---------- ---------- ---------- ---------- ---------- ---------- Pretax income (loss) from continuing operations, excluding equity in earnings of unconsolidated affiliates $(141.0) $68.0 $12.0 $(2.0) $ 6.8 $(8.1) $10.9 Interest Expense on Indebtedness 53.3 59.6 57.4 65.8 52.8 15.2 11.3 Interest Differencial on Term Bank Debt Refinance with Notes and Common Stock Portion of Rents Representative of an 17.2 17.8 15.4 17.2 17.0 4.3 4.0 Appropriate Interest Factor Distributed income of equity investments - 5.0 - 5.0 3.0 3.0 - Income (Loss) as Adjusted $ 77.9 $77.4 $72.8 $83.0 $74.0 $20.6 $16.1 Fixed Charges: Interest Expense on Indebtedness $ 53.3 $59.6 $57.4 $65.8 $52.8 $15.2 $11.3 Interest Differencial on Term Bank Debt Refinance with Notes and Common Stock Capitalized Interest 7.4 - - - 4.2 1.1 0.8 Portion of Rents Representative of an Appropriate Interest Factor 17.2 17.8 15.4 17.2 17.0 4.3 4.0 --------- --------- ---------- ---------- ---------- ---------- ---------- Total Fixed Charges $ 77.9 $77.4 $72.8 $83.0 $74.0 $20.6 $16.1 --------- --------- ---------- ---------- ---------- ---------- ---------- Ratio of Earnings to Fixed Charges = (a) 1.9 1.2 (b) 1.0 1.1 - (c) 1.6 ========= ========= ========== ========== ========== ========== ==========
Note: Excludes amortization expense on debt discount due to immateriality (a) Due to restructuring, asset impairment and other charges of $178.0 million, the 1997 ratio of earnings to fixed charges coverage was less than 1:1. The ration of earnings to fixed charges would have been 1:1 if a deficiency of $148.4 million was eliminated. Excluding these items, the ratio of earnings to fixed charges for 1997 would have been 1.4x. (b) Includes unusual costs of $12.7 million. Excluding these items, the ratio of earnings to fixed charges for 1999 would have been 1.3x. (c) The ratio of earnings to fixed charges would have been 1:1 if a deficiency of $6.2 million was eliminated.