Guitar Center, Inc.
Computation of Ratio of Earnings to Fixed Charges
(Dollars in thousands)
(unaudited)
EXHIBIT 12.1
Year Ended December 31,
2000 1999 1998 1997 1996
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Income (loss) before income taxes and extraordinary 35,758 18,959 $13,258 $20,393 $(66,879)
Add: Interest expense 12,466 11,235 10,844 9,892 12,557
Portion of rents representative of
interest factor 5,196 3,916 2,632 1,605 1,054
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Earnings (loss) as adjusted 53,420 34,110 26,734 31,890 (53,268)
Fixed charges:
Interest expense 12,466 11,235 10,844 9,892 12,557
Portion of rents representative of
interest factor 5,196 3,916 2,632 1,605 1,054
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Total fixed charges 17,662 15,151 13,476 11,497 13,611
Ratio of earnings fixed charges 3.0 2.3 2.0 2.8 -3.9
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(a) The ratio of earnings to fixed charges has been computed based upon
earnings (loss) before provision for income taxes and fixed charges.
Fixed charges consist of interest expense and one third of rental
expense (the proportion deemed representative of the interest factor).
(b) Earnings (loss) before income taxes and fixed charges were insufficient
to cover fixed charges by $66.9 million for the year ended December
31, 1996.