EXHIBIT 12.1
STATEMENT REGARDING COMPUTATION OF RATIOS
Nine Months
Sept. 99 Dec. 98
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PROFORMA
Fixed Charges:
Interest expensed & capitalized 24,882 34,899
Amortization of Deferred Financing Fee 154 184
Amortization of Debt Discount 251 298
Estimate of Interest in rental expense 1,388 1,616
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26,675 36,997
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Preferred Dividends (0% effective tax rate) 10,834 12,803
Earnings:
Pretax income from continuing operations (30,571) (38,386)
Add Back: Fixed charges 26,675 38,997
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(3,896) (1,389)
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Earnings to Fixed Charges (0.1460) (0.0376)
Deficiency (30,571) (38,386)
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Nine Months
WEEKLY READER Sept. 99 Dec. 98 Dec. 97 Dec. 96 Dec. 95 Dec.94
Fixed Charges:
Interest expensed & capitalized 10,133 9,232 8,968 5,851 6,134 6,262
Amortization of Deferred Financing Fees 154 184 663 983 268 236
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10,287 9,416 7,631 7,184 6,402 6,498
Earnings:
Pretax income from continuing operations
before minority interest 1,330 5,807 4,005 (2,863) 43 (1,708)
Fixed charges 10,287 9,416 7,631 7,184 6,402 6,498
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11,617 15,223 11,638 4,321 6,445 4,790
Earnings to Fixed Charges 1.13 1.62 1.52 0.60 1.01 0.74
Surplus (Deficiency) 1,330 5,807 4,005 (2,863) 43 (1,708)
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Pre-
Predecessor
Successor Predecessor 6/30 - 7/6/94-
WRC MEDIA INC. & SUBSIDIARY 7/14- 1/1-7/13/99 1998 1997 1996 12/31/95 6/29/95
(COMPASSLEARNING) 9/30/99
Fixed Charges:
Interest expensed & capitalized 729 2,649 4,286 5,013 4,590 3,902 --
Amortization of Deferred Financing Fee 185 205 286 1,322 365 183 --
Amortization of Debt Discount -- -- -- 980 270 10 --
Estimated of interest in rental expense 236 489 1,010 1,442 1,268 655 1,794
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1,150 3,343 5,582 8,757 6,493 4,750 1,794
Earnings:
Pretax income from continuing operations
before minority interest (10,296) (778) (7,773) (56,204) (22,279) (21,273) (12,399)
Fixed charges 1,150 3,343 5,582 8,757 6,493 4,750 1,794
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(9,146) 2,585 (2,191) (47,447) (15,786) (16,523) (10,605)
Earnings to Fixed Charges (7.95) 0.77 (0.39) (5.42) (2.43) (3.48) (5.91)
Deficiency (10,296) (778) (7,773) (56,204) (22,279) (21,273) (12,399)
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Year Ended June 30,
AMERICAN GUIDANCE SERVICES 1998 1997 1996 1995 1994
Fixed Charges:
Interest expensed & capitalized 159 229 372 540 688
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159 229 372 540 688
Earnings:
Pretax income from continuing operations
before minority interest 7,244 3,033 1,335 972 (6,445)
Fixed charges 159 229 372 540 688
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7,403 3,262 1,707 1,512 (5,757)
Earnings to Fixed Charges 46.56 14.24 4.59 2.80 (8.37)
Surplus (Deficiency) 7,244 3,033 1,335 972 (6,445)
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