EXHIBIT 12
MUZAK LIMITED PARTNERSHIP
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN THOUSANDS)
EIGHT- FOUR- SIX MONTHS
YEAR MONTHS MONTHS ENDED
ENDED ENDED ENDED YEAR ENDED DECEMBER 31, JUNE 30,
DEC. 31, AUGUST 31, DEC. 31, ---------------------------- ------------------
1991 1992 1992 1993 1994 1995 1995 1996
EARNINGS:
Net income (loss)
attributable to general
and limited partners... ($ 9,505) ($ 5,975) ($ 656) ($ 4,047) ($ 8,116) ($ 6,743) ($ 3,961) ($ 4,718)
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ADD BACK FIXED CHARGES:
Interest expense includ-
ing
amortization of de-
ferred
financing costs........ 7,514 3,639 1,228 3,785 6,990 7,483 3,791 3,574
Preferred returns....... -- -- 188 572 933 1,029 506 543
Assumed interest compo-
nent
of rent expenses(1).... 1,444 1,064 546 1,863 2,128 2,566 1,278 1,049
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Total fixed charges... 8,958 4,703 1,962 6,220 10,051 11,078 5,575 5,166
-------- -------- -------- -------- -------- -------- -------- --------
Adjusted earnings....... ($ 547) ($ 1,272) $ 1,306 $ 2,173 $ 1,935 $ 4,335 $ 1,614 $ 448
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Ratio of earnings to
fixed charges.......... (0.06)x (0.27)x 0.67x 0.35x 0.19x 0.39x 0.29x 0.09x
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Deficiency of earnings
to fixed charges....... $ 9,505 $ 5,975 $ 656 $ 4,047 $ 8,116 $ 6,743 $ 3,961 $ 4,718
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(1)Estimated as one-third of operating lease expenses.