EX-12.1 4 dex121.htm COMPUTATION OF RATIO OF EARNINGS Prepared by R.R. Donnelley Financial -- COMPUTATION OF RATIO OF EARNINGS
Exhibit 12.1
 
SWS GROUP, INC. AND SUBSIDIARIES
 
STATEMENT RE COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In thousands, except ratio)
 
    
Fiscal Years Ended
    
June 28,
2002
     
June 29,
2001
   
June 30,
2000
   
June 25,
1999
   
June 26,
1998
           
Restated
               
Income (loss) before income taxes and minority interest in consolidated subsidiaries
   
$
(7,385
)
   
$
34,962
   
$
137,905
   
$
53,380
   
$
42,472
Add fixed charges:
                                     
Interest expense
   
 
65,807
 
   
 
171,578
   
 
178,084
   
 
112,794
   
 
113,795
Interest factor in rents(1)
   
 
7,798
 
   
 
6,608
   
 
4,770
   
 
3,575
   
 
2,600
    
  
  
  
  
Total fixed charges
   
 
73,605
 
   
 
178,186
   
 
182,854
   
 
116,369
   
 
116,395
    
  
  
  
  
Earnings before fixed charges and income taxes
   
$
66,220
 
   
$
213,148
   
$
320,759
   
$
169,749
   
$
158,867
    
  
  
  
  
Ratio of earnings to fixed charges(2)
   
 
—  
 
   
 
1.2
   
 
1.8
   
 
1.5
   
 
1.4
    
  
  
  
  
(1)
 
The Company estimates that one-third of rental expense is representative of the interest factor.
(2)
 
Due to the Company’s net loss before income taxes and minority interest in consolidated subsidiaries in 2002, the coverage ratio was less than 1:1. The Company must generate additional earningsof $7,385,000 to achieve a coverage ratio of 1:1.