EX-12.1 8 c05411exv12w1.htm EXHIBIT 12.1 Exhibit 12.1
Exhibit 12.1
Education Management LLC
Computation of Ratio of Earnings to Fixed Charges (Unaudited)
(Dollars in millions)
                                                   
    Predecessor       Successor        
    July 1, 2005       June 1, 2006        
    through May 31,       through June 30,     Year Ended June 30,  
    2006       2006     2007     2008     2009     2010  
 
                                                 
Computation of fixed charges
                                                 
Interest expense
  $ 0.8       $ 13.8     $ 175.2     $ 164.1     $ 157.1     $ 123.9  
Amortization of debt issuance costs
    1.3         0.6       7.7       7.7       7.8       8.1  
Portion of rental expense representative of interest
    18.5         1.9       22.3       27.1       30.8       35.8  
 
                                     
Total fixed charges
  $ 20.6       $ 16.3     $ 205.2     $ 198.9     $ 195.7     $ 167.8  
 
                                     
 
                                                 
Computation of earnings (loss)
                                                 
Income (loss) before income taxes
  $ 174.0       $ (32.1 )   $ 59.3     $ 105.8     $ 165.4     $ 250.3  
Fixed charges per above
    20.6         16.3       205.2       198.9       195.7       167.8  
 
                                     
Total earnings (loss)
  $ 194.6       $ (15.8 )   $ 264.5     $ 304.7     $ 361.1     $ 418.1  
Ratio of earnings (loss) to fixed charges
    9.4 X       (1.0 )X     1.3 X     1.5 X     1.8 X     2.5 X
 
                                     
     
*   Earnings for the period June 1 through June 30, 2006 were inadequate to cover fixed charges by $32.1 million.