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LIONS GATE ENTERTAINMENT CORP.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(in thousands, except ratios)
| | Nine Months Ended December 31, | Year Ended March 31, | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | 2011 | 2010 | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
Fixed charges: | ||||||||||||||||||||||
Interest expense | $ | 51,139 | $ | 41,735 | $ | 55,180 | $ | 47,162 | $ | 34,275 | $ | 29,899 | $ | 29,839 | ||||||||
Capitalized interest | 7,746 | 6,481 | 5,248 | 4,991 | 10,319 | 6,951 | 4,782 | |||||||||||||||
Estimation of the interest within rental expense | 2,318 | 2,874 | 3,520 | 4,204 | 5,635 | 5,848 | 5,713 | |||||||||||||||
Total fixed charges: | $ | 61,203 | $ | 51,090 | $ | 63,948 | $ | 56,357 | $ | 50,229 | $ | 42,698 | $ | 40,334 | ||||||||
Earnings: | ||||||||||||||||||||||
Add: | ||||||||||||||||||||||
Income (loss) before equity interests and income taxes | $ | (19,520 | ) | $ | (50,133 | ) | $ | (5,413 | ) | $ | 9,941 | $ | (166,686 | ) | $ | (75,845 | ) | $ | 25,757 | |||
Fixed charges (calculated above) | 61,203 | 51,090 | 63,948 | 56,357 | 50,229 | 42,698 | 40,334 | |||||||||||||||
Amortization of capitalized interest | 4,380 | 6,290 | 8,408 | 6,342 | 5,921 | 4,778 | 1,164 | |||||||||||||||
Distributed income of equity investees, net of equity pick-up | — | — | 10,200 | — | — | — | — | |||||||||||||||
Deduct: | ||||||||||||||||||||||
Capitalized interest | (7,746 | ) | (6,481 | ) | (5,248 | ) | (4,991 | ) | (10,319 | ) | (6,951 | ) | (4,782 | ) | ||||||||
Total earnings | $ | 38,317 | $ | 766 | $ | 71,895 | $ | 67,649 | $ | (120,855 | ) | $ | (35,320 | ) | $ | 62,473 | ||||||
Ratio of Earnings to Fixed Charges(1) | (1) | (1) | 1.1x | 1.2x | (1) | (1) | 1.5x | |||||||||||||||
- (1)
- "Earnings" include pretax income from continuing operations before non-controlling interests or equity interests plus (a) fixed charges and amortization of capitalized interest minus (b) interest capitalized. "Fixed charges" consist of interest expensed, interest capitalized and an estimate of interest within rental expense.
We had pretax losses for the years ended March 31, 2009, and 2008 and for the nine months ended December 31, 2011 and 2010, and as a result, the ratio of earnings to fixed charges was less than one to one. Earnings were insufficient to cover fixed charges by $171.1 million, and $78.0 million for the years ended March 31, 2009, and 2008, respectively, and by $22.9 million and $50.3 million for the nine months ended December 31, 2011 and 2010, respectively.
LIONS GATE ENTERTAINMENT CORP. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (in thousands, except ratios)