Exhibit 12
STATEMENT REGARDING COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Ratio of Earnings to Fixed Charges
American Tower Corporation
The following table reflects the computation of the ratio of earnings to fixed charges for the periods presented (in thousands):
| | | Year Ended December 31,
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| Computation of Earnings: | | 1998
| | | 1999
| | | 2000
| | | 2001
| | | 2002
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Loss from continuing operations before income taxes | | $ | (44,481 | ) | | $ | (51,975 | ) | | $ | (257,555 | ) | | $ | (491,067 | ) | | $ | (381,526 | ) |
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Add: | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | 23,228 | | | | 27,274 | | | | 152,749 | | | | 268,359 | | | | 255,940 | |
Operating leases | | | 3,245 | | | | 6,963 | | | | 16,889 | | | | 26,056 | | | | 29,237 | |
Minority interest in net earnings of subsidiaries | | | 287 | | | | 142 | | | | 202 | | | | 318 | | | | 2,118 | |
Losses from equity investments | | | | | | | | | | | 2,500 | | | | 9,064 | | | | 9,000 | |
Amortization of interest capitalized | | | 47 | | | | 206 | | | | 698 | | | | 1,587 | | | | 2,292 | |
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Earnings as adjusted | | | (17,674 | ) | | | (17,390 | ) | | | (84,517 | ) | | | (185,683 | ) | | | (82,939 | ) |
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Computation of fixed charges: | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | 23,228 | | | | 27,274 | | | | 152,749 | | | | 268,359 | | | | 255,940 | |
Interest capitalized | | | 1,403 | | | | 3,379 | | | | 11,365 | | | | 15,321 | | | | 5,835 | |
Operating leases | | | 3,245 | | | | 6,963 | | | | 16,889 | | | | 26,056 | | | | 29,237 | |
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Fixed charges | | | 27,876 | | | | 37,616 | | | | 181,003 | | | | 309,736 | | | | 291,012 | |
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Deficiency in earnings required to cover fixed charges | | $ | (45,550 | ) | | $ | (55,006 | ) | | $ | (265,520 | ) | | $ | (495,419 | ) | | $ | (373,951 | ) |
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| (1) | | Interest expense includes amortization of deferred financing costs. Interest expense also includes an amount related to our capital lease with TV Azteca for the years ended December 31, 2000, 2001 and 2002 and redeemable preferred stock dividends for the year ended December 31, 1998. |
| (2) | | For the purposes of this calculation, “earnings” consists of loss from continuing operations before income taxes, fixed charges (excluding interest capitalized), minority interest in net earnings of subsidiaries, losses from equity investments and amortization of interest capitalized. “Fixed charges” consist of interest expensed and capitalized, amortization of debt discount and related issuance costs and the component of rental expense associated with operating leases believed by management to be representative of the interest factor thereon (30%). |
