Exhibit 12.1
LIONS GATE ENTERTAINMENT CORP.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(in thousands, except ratios)
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| Year Ended March 31, |
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| 2013 |
| 2012 |
| 2011 |
| 2010 |
| 2009 |
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Fixed charges: |
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Interest expense |
| $ | 93,580 |
| $ | 78,111 |
| $ | 55,180 |
| $ | 47,162 |
| $ | 34,275 |
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Capitalized interest |
| 14,465 |
| 11,668 |
| 5,248 |
| 4,991 |
| 10,319 |
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Estimation of the interest within rental expense |
| 1,008 |
| 1,226 |
| 3,520 |
| 4,204 |
| 5,635 |
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Total fixed charges: |
| $ | 109,053 |
| $ | 91,005 |
| $ | 63,948 |
| $ | 56,357 |
| $ | 50,229 |
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Earnings: |
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Add: |
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Income (loss) before equity interests and income taxes |
| $ | 159,446 |
| $ | (42,835 | ) | $ | (5,413 | ) | $ | 9,941 |
| $ | (166,686 | ) |
Fixed charges (calculated above) |
| 109,053 |
| 91,005 |
| 63,948 |
| 56,357 |
| 50,229 |
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Amortization of capitalized interest |
| 11,796 |
| 6,658 |
| 8,408 |
| 6,342 |
| 5,921 |
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Distributed income of equity investees, net of equity pick-up |
| — |
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| 10,200 |
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| — |
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Deduct: |
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Capitalized interest |
| (14,465 | ) | (11,668 | ) | (5,248 | ) | (4,991 | ) | (10,319 | ) | |||||
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Total earnings |
| $ | 265,830 |
| $ | 43,160 |
| $ | 71,895 |
| $ | 67,649 |
| $ | (120,855 | ) |
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Ratio of Earnings to Fixed Charges (1) |
| 2.4 | x | (1) | x | 1.1 | x | 1.2 | x | (1) |
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(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, 2012 and 2009, 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 $47.8 million and $171.1 million for the years ended March 31, 2012 and 2009, respectively.
