Exhibit 12.1
Vidéotron Ltée
Computation of ratio of earnings to fixed charges
(dollars in million, except for ratio of earnings to fixed charges)
| Year ended August 31, | Four Months Ended December 31, | Year Ended December 31, | Nine Months Ended September 30, | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1998 | 1999 | 1999 | 2000 | 2001 | 2002 | 2003 | |||||||||||||||
CANADIAN GAAP | ||||||||||||||||||||||
Fixed charges | ||||||||||||||||||||||
Interest expense, before interest income | $ | 65.3 | $ | 55.8 | $ | 22.3 | $ | 65.8 | $ | 87.3 | $ | 81.0 | $ | 52.9 | ||||||||
Amortization of capitalized expenses related to indebtedness | 2.8 | 4.5 | (1.0 | ) | 1.8 | 2.5 | 4.6 | 3.8 | ||||||||||||||
Interest capitalized to the cost of fixed assets | 2.0 | 2.5 | 0.6 | 2.9 | 0.7 | 0.0 | 0.0 | |||||||||||||||
$ | 70.1 | $ | 62.8 | $ | 21.9 | $ | 70.5 | $ | 90.5 | $ | 85.6 | $ | 56.7 | |||||||||
Earnings | ||||||||||||||||||||||
Income from continuing operation before income taxes and non controlling interest | 190.2 | 62.3 | 39.7 | (52.0 | ) | (62.1 | ) | 25.4 | 91.5 | |||||||||||||
Fixed charges | 70.1 | 62.8 | 21.9 | 70.5 | 90.5 | 85.6 | 56.7 | |||||||||||||||
Interest capitalized to the cost of fixed assests | (2.0 | ) | (2.5 | ) | (0.6 | ) | (2.9 | ) | (0.7 | ) | 0.0 | 0.0 | ||||||||||
Amortization of capitalized interest | 0.1 | 0.3 | 0.1 | 0.6 | 0.7 | 0.7 | 0.7 | |||||||||||||||
$ | 258.4 | $ | 122.9 | $ | 61.1 | $ | 16.2 | $ | 28.4 | $ | 111.7 | $ | 148.9 | |||||||||
Ratio of earnings to fixed charges | 3.7 | 2.0 | 2.8 | 0.2 | 0.3 | 1.3 | 2.6 | |||||||||||||||
US GAAP | ||||||||||||||||||||||
Fixed charges | ||||||||||||||||||||||
Interest expense, before interest income | $ | 117.0 | $ | 77.5 | $ | 43.1 | ||||||||||||||||
Amortization of capitalized expenses related to indebtedness | 2.5 | 4.6 | 3.8 | |||||||||||||||||||
Interest capitalized to the cost of fixed assets | 0.7 | 0.0 | 0.0 | |||||||||||||||||||
$ | 120.2 | $ | 82.1 | $ | 46.9 | |||||||||||||||||
Earnings | ||||||||||||||||||||||
Income from continuing operation before income taxes and non controlling interest | $ | (136.8 | ) | $ | (1,984.5 | ) | $ | 80.3 | ||||||||||||||
Fixed charges | 120.2 | 82.1 | 46.9 | |||||||||||||||||||
Interest capitalized to the cost of fixed assets | (0.7 | ) | 0.0 | 0.0 | ||||||||||||||||||
Amortization of capitalized interest | 0.7 | 0.7 | 0.7 | |||||||||||||||||||
$ | (16.7 | ) | $ | (1,901.7 | ) | $ | 127.8 | |||||||||||||||
Ratio of earnings to fixed charges | — | — | 2.7 | |||||||||||||||||||
For the year ended December 31, 2001 and 2002, Pro forma earnings as calculated under US GAAP, were inadequate to cover our fixed charges and the coverage deficiency $136.9 million and $1,983.8 million, respectively.