Exhibit 12.1
DOW JONES & COMPANY, INC.
RATIO OF EARNINGS TO FIXED CHARGES
DOLLARS IN THOUSANDS
9 MOS ENDED YEAR ENDED DECEMBER 31,
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2004 2003 2002 2001 2000 1999
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RATIO OF EARNINGS TO FIXED CHARGES (1)
EARNINGS FROM CONTINUING OPERATIONS BEFORE FIXED
CHARGES:
Income from continuing operations before income
taxes and minority interests $ 107,082 $ 220,858 $ 257,530 $ 99,688 $ 76,378 $ 418,046
Less: Equity in earnings (losses) of associated
companies 1,386 2,869 (488) (17,184) (17,182) (27,907)
Distributed earnings from associated companies 9,401 10,102 9,273 8,918 12,161 6,211
Amortization of capitalized interest 839 1,837 283 237 208 -
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Adjusted pre-tax earnings from continuing
operations 115,936 229,928 267,574 126,027 105,929 452,164
Fixed charges 16,508 18,524 20,592 29,884 30,698 29,965
Less: Capitalized interest - - - (8,859) (8,416) (4,507)
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Earnings from continuing operations before fixed
charges $ 132,444 $ 248,452 $ 288,166 $ 147,052 $ 128,211 $ 477,622
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FIXED CHARGES:
Interest expense, net of capitalized interest $ 2,412 $ 2,830 $ 3,083 $ 500 $ 2,037 $ 5,269
Capitalized interest - - - 8,859 8,416 4,507
Debt issuance costs 776 1,035 1,055 1,118 595 1,056
Portion of rentals representative of interest
factor 13,320 14,659 16,454 19,408 19,650 19,133
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Total fixed charges $ 16,508 $ 18,524 $ 20,592 $ 29,885 $ 30,698 $ 29,965
============ =================================================================
Ratio of earnings to fixed charges 8.02 13.41 13.99 4.92 4.18 15.94
PRO FORMA RATIO OF EARNINGS TO FIXED CHARGES (2)
EARNINGS FROM CONTINUING OPERATIONS BEFORE
FIXED CHARGES:
Income from continuing operations before
income taxes and minority interests $ 107,082 $ 220,858
Less: Equity in earnings (losses) of
associated companies 1,386 2,869
Distributed earnings from associated
companies 9,401 10,102
Amortization of capitalized interest 839 1,837
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Adjusted pre-tax earnings from continuing
operations 115,936 229,928
Fixed charges 23,544 27,906
Less: Capitalized interest - -
Less: Incremental interest expense
attributable to the notes (6,536) (8,715)
Less: Incremental debt issuance costs
attributable to the notes (500) (667)
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Earnings from continuing operations
before fixed charges $ 132,444 $ 248,452
============ =============
FIXED CHARGES:
Interest expense, net of capitalized
interest $ 2,412 $ 2,830
Capitalized interest - -
Debt issuance costs 776 1,035
Portion of rentals representative of
interest factor 13,320 14,659
Incremental interest expense attributable
to the notes 6,536 8,715
Incremental debt issuance costs
attributable to the notes 500 667
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Total fixed charges $ 23,544 $ 27,906
============ =============
Ratio of earnings to fixed charges 5.63 8.90
PRO FORMA RATIO OF EARNINGS TO FIXED CHARGES - SUPPLEMENTAL (3)
EARNINGS FROM CONTINUING OPERATIONS BEFORE
FIXED CHARGES:
Pro forma income from continuing operations before
income taxes and minority interests $ 96,859 $ 205,691
Less: Equity in earnings (losses) of
associated companies 1,386 2,869
Distributed earnings from associated
companies 9,401 10,102
Amortization of capitalized interest 839 1,837
Pro forma incremental interest expense at
effective rate at transaction
completion date 8,384 11,178
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Adjusted pre-tax earnings from continuing
operations 114,097 225,939
Fixed charges 27,585 33,294
Less: Capitalized interest - -
Less: Incremental interest expense
attributable to the debt incurred
for the acquisition (10,577) (14,103)
Less: Incremental debt issuance costs
attributable to the debt incurred
for the acquisition (500) (667)
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Earnings from continuing operations
before fixed charges $ 130,605 $ 244,463
============ =============
FIXED CHARGES:
Interest expense, net of capitalized
interest $ 2,412 $ 2,830
Capitalized interest - -
Debt issuance costs 776 1,035
Portion of rentals representative of
interest factor 13,320 14,659
Incremental interest expense attributable
to the debt incurred for the acquisition 10,577 14,103
Incremental debt issuance costs
attributable to the debt incurred for
the acquisition 500 667
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Total fixed charges $ 27,585 $ 33,294
============ =============
Ratio of earnings to fixed charges 4.73 7.34
(1) For purposes of calculating the ratio of earnings to fixed charges,
earnings represents earnings from continuing operations before income taxes
and before income (losses) from equity method investments plus (a) fixed
charges, excluding capitalized interest, (b) amortization of capitalized
interest and (c) cash distributions from equity method investments. Fixed
charges include (a) interest expense, whether expensed or capitalized, (b)
amortization of debt issuance costs and (c) the portion of operating rental
expense which management believes is representative of the interest
component of rent expense.
(2) Pro forma ratio of earnings to fixed charges reflects the pro forma
effects on earnings and fixed charges, as defined in note (1) above,
depicting the estimated impact of incremental interest expense attributable
to the outstanding notes.
(3) The pro forma ratio of earnings to fixed charges - supplemental
reflects the pro forma effects on earnings and fixed charges, as defined in
note (1) above, depicting the estimated impact of the MarketWatch
acquisition, including incremental interest expense attributable to the
outstanding notes and the remaining $213.8 million of commercial paper
borrowings (at an interest rate of 2.52% as of the closing date of the
MarketWatch acquisition) utilized to fund the acquisition of MarketWatch.