EX-12.1 2 exhibit12-1.txt COMPUTATION OF RATIO OF EARNINGS
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 ------------------------------------------------- ------------------ 1996 1997 1998 1999 2000 2000 2001 -------- -------- -------- -------- -------- -------- -------- Pretax income/(loss) from continuing operations, excluding equity in earnings of unconsolidated affilites $ 27.2 $(141.0) $68.0 $12.0 $(2.0) $ 3.2 $(8.1) Interest Expense on Indebtedness 52.8 53.3 59.6 57.4 65.8 17.5 15.2 Portion of Rents Representative of an Appropriate Interest Factor 11.1 17.2 17.8 17.2 16.3 4.2 4.1 Distributed income of equity investments - - 5.0 - 5.0 - 3.0 -------- -------- -------- -------- -------- -------- -------- Income (Loss) as Adjusted $91.1 ($70.5) $150.4 $86.6 $85.1 $ 24.9 $ 14.2 -------- -------- -------- -------- -------- -------- -------- Fixed Charges: Interest Expense on Indebtedness $52.8 $53.3 $59.6 $57.4 $65.8 $ 17.5 $ 15.2 Capitalized Interest - 7.4 - - - - 1.1 Portion of Rents Representative of an Appropriate Interest Factor 11.1 17.2 17.8 17.2 16.3 4.2 4.1 -------- -------- -------- -------- -------- -------- -------- Total Fixed Charges $63.9 $77.9 $77.4 $74.6 $82.1 $ 21.7 $ 20.4 -------- -------- -------- -------- -------- --------- -------- RATIO OF EARNINGS TO FIXED CHARGES 1.4 -(a) 1.9 1.2(b) 1.0 1.2 - (c) ======== ======= ======== ======== ======== ======== ========
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 coverage was less than 1:1. The ratio of earnings to fixed charges would have been 1:1 if a deficiency of $148.4 million was eliminated. Excluding the $178.0 million, the ratio for 1997 would have been 1.4x. (b) Includes unusual costs and expenses of $12.7 million. Excluding these items, the ratio for 1999 is 1.3x. (c) The ratio of earnings to fixed charges would have been 1:1 if a deficiency of $6.1 million was eliminated.