EXHIBIT 12.1
Warner Music Group
(Otherwise known as WMG Acquisition Corp.)
Computation of Ratio of Earnings to Fixed Charges
(Unaudited)
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| Historical |
| Pro Forma |
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| Predecessor |
| Successor |
| Twelve |
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| Ten Months |
| Three Months |
| Seven Months |
| Months |
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| Ended |
| Ended |
| Ended |
| Ended |
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| Years Ended November 30, |
| September 30, |
| February 28, |
| September 30, |
| September 30, |
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(Dollars in millions) |
| 2000 |
| 2001 |
| 2002 |
| 2003 |
| 2003 |
| 2004 |
| 2004 |
| 2004 |
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Loss before Income taxes |
| $ | (365 | ) | $ | (1,066 | ) | $ | (1,570 | ) | $ | (1,317 | ) | $ | (268 | ) | $ | (15 | ) | $ | (74 | ) | $ | (1,161 | ) |
Add: |
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Fixed charges |
| 74 |
| 89 |
| 78 |
| 65 |
| 50 |
| 8 |
| 99 |
| 151 |
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Income as adjusted before income taxes |
| $ | (291 | ) | $ | (977 | ) | $ | (1,492 | ) | $ | (1,252 | ) | $ | (218 | ) | $ | (7 | ) | $ | 25 |
| $ | (1,010 | ) |
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Fixed Charges |
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Interest expense |
| $ | 56 |
| $ | 71 |
| $ | 59 |
| $ | 47 |
| $ | 36 |
| $ | 4 |
| $ | 91 |
| 135 |
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Portion of rental expense representative of interest(1) |
| 18 |
| 18 |
| 19 |
| 18 |
| 14 |
| 4 |
| 8 |
| 16 |
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Total fixed charges |
| $ | 74 |
| $ | 89 |
| $ | 78 |
| $ | 65 |
| $ | 50 |
| $ | 8 |
| $ | 99 |
| $ | 151 |
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Deficiency in earnings over fixed charges |
| $ | (365 | ) | $ | (1,066 | ) | $ | (1,570 | ) | $ | (1,317 | ) | $ | (268 | ) | $ | (15 | ) | $ | (74 | ) | $ | (1,161 | ) |
(1) Estimated at 1/3 of total rent expense.