EXHIBIT 12.1
RATIO OF EARNINGS TO FIXED CHARGES COMPUTATIONS
PRO FORMA
DECEMBER 31, DECEMBER 31,
1999 1999
------------ -------------
WRC MEDIA INC.
Fixed Charges:
Interest expensed & capitalized........................... 7,823 33,182
Amortization of Deferred Financing Fee.................... 184 944
Estimated of interest in rental expense................... 260 260
-------- --------
8,267 34,386
======== ========
Preferred Dividends (0% effective tax rate)............... 1,518 12,266
======== ========
Earnings:
Pretax income from continuing operations.................. (15,995) (21,718)
Add Back Fixed charges.................................... 9,785 46,652
-------- --------
(6,210) 24,934
======== ========
Earnings to Fixed Charges and preferred dividends and
accretion................................................. (.63) (.53)
======== ========
Deficiency.................................................. (15,995) (21,718)
======== ========
DECEMBER 31,
----------------------------------------------------
1995 1996 1997 1998 1999
-------- -------- -------- -------- --------
WEEKLY READER CORPORATION
Fixed Charges:
Interest expenses & capitalized........................... 6,134 5,861 6,968 9,232 14,637
Amortization of Deferred Financing Fees................... 268 963 563 184 184
------ ------- ------- ------- -------
6,402 6,814 7,631 9,416 14,821
Earnings:
Pretax income from continuing operations before minority
interest................................................ 43 (2,863) 4,005 5,807 7,648
Fixed charges............................................. 6,402 6,814 7,631 9,416 14,821
------ ------- ------- ------- -------
6,445 3,951 11,636 15,223 22,469
Earnings to Fixed Charges................................... 1.01 (0.58) 1.52 1.62 1.52
------ ------- ------- ------- -------
Surplus (Deficiency)........................................ 43 (2,863) 4,005 5,807 7,648
====== ======= ======= ======= =======
PRE-PREDECESSOR PREDECESSOR SUCCESSOR
--------------- --------------------------------------------------------- ----------------
6/30-12/31
7/8/94-6/28/95 1995 1996 1997 1998 1/1-7/13/99 7/14/99-12/31/99
--------------- ---------- -------- -------- -------- ----------- ----------------
COMPASS LEARNING
Fixed Charges:
Interest expensed &
capitalized.................. -- 1,717 3,955 2,711 4,000 2,650 5,357
Amortization of Deferred
Financing Fee................ -- 180 365 1,322 286 204 297
Amortization of Debt
Discount..................... -- 10 270 980 -- -- --
Estimated of interest in rental
expense........................ 1,794 655 1,268 1,442 1,010 489 260
-------- -------- -------- -------- ------- ------ --------
1,794 2,562 5,858 6,455 5,296 3,343 5,914
Earnings:
Pretax income from continuing
operations before minority
interest..................... (12,399) (21,273) (22,279) (56,204) (7,773) (778) (10,296)
Fixed charges.................. 1,794 2,562 5,858 6,455 5,296 3,343 5,914
-------- -------- -------- -------- ------- ------ --------
(10,605) (18,711) (16,421) (49,749) (2,477) (2,565) (4,382)
Earnings to Fixed Charges........ (5.91) (7.30) (2.80) (7.71) (0.47) (0.77) (0.74)
======== ======== ======== ======== ======= ====== ========
Deficiency....................... (12,399) (21,273) (22,279) (56,204) (7,773) (778) (10,296)
======== ======== ======== ======== ======= ====== ========