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Exhibit 12
Hollinger Inc. and Subsidiaries
Computation of Ratio of Earnings to Fixed Charges
Year Ended December 31, 6 months ended June 30,
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1998 1999 2000 2001 2002 2002 2003
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(in thousands of Canadian dollars)
Canadian GAAP
Fixed charges:
Interest expense, including amortization
of deferred financing fees $233,878 $258,231 $ 274,331 $ 177,926 $ 121,747 $ 62,624 $ 45,968
Capitalized interest 4,611 8,287 4,653 2,304 -- -- --
Interest expense included in rent expense 8,714 8,651 9,480 7,530 8,930 4,532 4,310
-------- -------- ---------- --------- --------- -------- --------
$247,203 $275,169 $ 288,464 $ 187,760 $ 130,677 $ 67,156 $ 50,278
======== ======== ========== ========= ========= ======== ========
Earnings (losses):
Net earnings (loss) $111,485 $154,815 $ 189,373 $(131,898) $ (88,640) $(19,696) $ 32,718
Minority interest (recovery) expense 267,358 182,215 331,058 (233,508) (124,896) (7,741) 28,822
Income tax (recovery) expense 300,929 207,263 260,091 (89,477) 124,025 (13,819) 35,409
Losses (earnings) from equity-accounted
companies 616 (1,211) 14,115 18,571 1,233 485 1,391
Fixed charges 247,203 275,169 288,464 187,760 130,677 67,156 50,278
Amortization of capitalized interest 1,005 1,005 1,005 1,509 1,423 722 684
Capitalized interest (4,611) (8,287) (4,653) (2,304) -- -- --
-------- -------- ---------- --------- --------- -------- --------
$923,985 $810,969 $1,079,453 $(249,347) $ 43,822 $ 27,107 $149,302
======== ======== ========== ========= ========= ======== ========
Ratio of earnings to fixed charges 3.7 2.9 3.7 -- -- -- 3.0
Deficiency of earnings to fixed charges $(437,107) $ (86,855) $(40,049)
U.S. GAAP
Fixed charges:
Interest expense, including amortization of
deferred financing fees $ 274,331 $ 177,926 $ 121,747
Dividends recorded as interest under
Canadian GAAP (11,054) (9,294) (8,185)
Capitalized interest 4,653 129 --
Interest expense included in rent expense 9,480 7,530 8,930
---------- --------- ---------
$ 277,410 $ 176,291 $ 122,492
========== ========= =========
Earnings (losses):
Net earnings (loss) $ 86,281 $ (82,047) $ (83,760)
Minority interest (recovery) expense 359,005 (271,592) (136,568)
Income tax (recovery) expense 302,270 (95,097) 73,843
Extraordinary items 4,700 -- --
Losses (earnings) from equity-accounted companies 21,997 10,689 1,233
Fixed charges 277,410 176,291 122,492
Amortization of capitalized interest 1,005 1,509 1,423
Capitalized interest (4,653) (129) --
---------- --------- ---------
$1,048,015 $(260,376) $ (21,337)
========== ========= =========
Ratio of earnings to fixed charges 3.8 -- --
Deficiency of earnings to fixed charges $(436,667) $(143,829)