EXHIBIT 12
PAGE 1 OF 3
K-III COMMUNICATIONS CORPORATION AND SUBSIDIARIES
RATIOS OF EARNINGS TO FIXED CHARGES
AND RATIOS OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1995 AND
FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
(DOLLARS IN THOUSANDS)
THREE MONTHS ENDED MARCH 31, YEARS ENDED DECEMBER 31,
--------------------------------- ------------------------------------------------
1996 1996 1995 1995 1995 1994 1993
PRO FORMA ACTUAL ACTUAL PRO FORMA ACTUAL ACTUAL ACTUAL
--------- -------- -------- --------- --------- --------- ---------
Earnings before fixed
charges:
Net loss............... $(34,661 ) $(20,740) $(20,701) $(108,618) $ (75,435) $ (41,403) $ (86,496)
Income tax benefit..... -- -- -- (59,600 ) (59,600) (42,100) --
--------- -------- -------- --------- --------- --------- ---------
Loss from continuing
operations before
income tax benefit..... (34,661 ) (20,740) (20,701) (168,218 ) (135,035) (83,503) (86,496)
Interest expense and
amortization of
deferred financing
costs................... 36,023 28,951 25,347 144,464 108,519 81,324 77,856
Interest portion of
rental expenses........ 3,168 2,578 2,149 12,360 8,129 7,991 5,838
--------- -------- -------- --------- --------- --------- ---------
Earnings (loss) before
fixed charges.......... 4,530 10,789 6,795 (11,394 ) (18,387) 5,812 (2,802)
--------- -------- -------- --------- --------- --------- ---------
Fixed charges:
Interest expense and
amortization of
deferred financing
costs................... 36,023 28,951 25,347 144,464 108,519 81,324 77,856
Interest portion of
rental expenses...... 3,168 2,578 2,149 12,360 8,129 7,991 5,838
--------- -------- -------- --------- --------- --------- ---------
Total fixed
charges................. 39,191 31,529 27,496 156,824 116,648 89,315 83,694
--------- -------- -------- --------- --------- --------- ---------
Deficiency of earnings
to fixed charges....... (34,661 ) (20,740) (20,701) (168,218 ) (135,035) (83,503) (86,496)
Preferred stock
dividends............... (11,844 ) (6,844) (6,414) (46,287 ) (28,978) (25,959) (22,290)
--------- -------- -------- --------- --------- --------- ---------
Deficiency of earnings
to fixed charges and
preferred stock
dividends............... $(46,505 ) $(27,584) $(27,115) $(214,505) $(164,013) $(109,462) $(108,786)
--------- -------- -------- --------- --------- --------- ---------
--------- -------- -------- --------- --------- --------- ---------
EXHIBIT 12
PAGE 2 OF 3
K-III COMMUNICATIONS CORPORATION AND SUBSIDIARIES
RATIOS OF EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AMORTIZATION AND
PROVISION FOR ONE-TIME CHARGES TO CASH INTEREST EXPENSE, RATIOS OF EARNINGS
BEFORE INTEREST, TAXES, DEPRECIATION, AMORTIZATION AND PROVISION FOR ONE-TIME
CHARGES TO CASH INTEREST EXPENSE AND CASH DIVIDENDS ON PREFERRED STOCK, RATIOS
OF EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AMORTIZATION AND PROVISION FOR
ONE-TIME CHARGES TO INTEREST EXPENSE AND DIVIDENDS ON PREFERRED STOCK
FOR THE TWELVE MONTHS ENDED MARCH 31, 1996 AND 1995
(DOLLARS IN THOUSANDS)
TWELVE MONTHS ENDED MARCH 31,
---------------------------------
1996 1996 1995
PRO FORMA ACTUAL ACTUAL
--------- -------- --------
Earnings before interest, taxes, depreciation, amortization and
provision for one-time charges................................ $281,303 $225,424 $197,478
--------- -------- --------
--------- -------- --------
Interest expense.............................................. $140,613 $108,821 $ 86,067
Less: non-cash portion of interest expense.................... (2,480 ) (2,417) (5,587)
--------- -------- --------
Cash interest expense.......................................... $138,133 $106,404 $ 80,480
--------- -------- --------
--------- -------- --------
Ratio of earnings before interest, taxes, depreciation,
amortization and provision for one-time charges to cash
interest expense............................................... 2.0x 2.1x 2.5x
--------- -------- --------
--------- -------- --------
Earnings before interest, taxes, depreciation, amortization and
provision for one-time charges................................ $281,303 $225,424 $197,478
--------- -------- --------
--------- -------- --------
Cash interest expense.......................................... $138,133 $106,404 $ 80,480
Cash dividends on preferred stock.............................. 31,500 11,500 11,500
--------- -------- --------
Cash interest expense plus cash dividends on preferred stock... $169,633 $117,904 $ 91,980
--------- -------- --------
--------- -------- --------
Ratio of earnings before interest, taxes, depreciation,
amortization and provision for one-time charges to cash
interest expense and cash dividends on preferred stock......... 1.7x 1.9x 2.1x
--------- -------- --------
--------- -------- --------
Earnings before interest, taxes, depreciation, amortization and
provision for one-time charges................................ $281,303 $225,424 $197,478
--------- -------- --------
--------- -------- --------
Interest expense............................................... $140,613 $108,821 $ 86,067
Dividends on preferred stock................................... 46,717 29,408 26,342
--------- -------- --------
Interest expense plus dividends on preferred stock............. $187,330 $138,229 $112,409
--------- -------- --------
--------- -------- --------
Ratio of earnings before interest, taxes, depreciation,
amortization and provision for one-time charges to interest
expense and dividends on preferred stock....................... 1.5x 1.6x 1.8x
--------- -------- --------
--------- -------- --------
EXHIBIT 12
PAGE 3 OF 3
K-III COMMUNICATIONS CORPORATION AND SUBSIDIARIES
RATIOS OF EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AMORTIZATION AND
PROVISION FOR ONE-TIME CHARGES TO CASH INTEREST EXPENSE, RATIOS OF EARNINGS
BEFORE INTEREST, TAXES, DEPRECIATION, AMORTIZATION AND PROVISION FOR ONE-TIME
CHARGES TO CASH INTEREST EXPENSE AND CASH DIVIDENDS ON PREFERRED STOCK, RATIOS
OF EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION, AMORTIZATION AND PROVISION FOR
ONE-TIME CHARGES TO INTEREST EXPENSE AND DIVIDENDS ON PREFERRED STOCK
FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
(DOLLARS IN THOUSANDS)
YEARS ENDED DECEMBER 31,
---------------------------------------------
1995 1995 1994 1993
PRO FORMA ACTUAL ACTUAL ACTUAL
--------- -------- -------- --------
Earnings before interest, taxes, depreciation,
amortization and provision for one-time charges...... $288,751 $216,115 $162,094 $138,242
--------- -------- -------- --------
--------- -------- -------- --------
Interest expense..................................... $140,691 $105,384 $ 78,244 $ 74,336
Less: non-cash portion of interest expense........... (2,774 ) (2,690) (5,807) (8,533)
--------- -------- -------- --------
Cash interest expense................................. $137,917 $102,694 $ 72,437 $ 65,803
--------- -------- -------- --------
--------- -------- -------- --------
Ratio of earnings before interest, taxes,
depreciation, amortization and provision for one-time
charges to cash interest expense...................... 2.1x 2.1x 2.2x 2.1x
--------- -------- -------- --------
--------- -------- -------- --------
Earnings before interest, taxes, depreciation,
amortization and provision for one-time charges...... $288,751 $216,115 $162,094 $138,242
--------- -------- -------- --------
--------- -------- -------- --------
Cash interest expense................................. $137,917 $102,694 $ 72,437 $ 65,803
Cash dividends on preferred stock..................... 31,500 11,500 11,500 11,500
--------- -------- -------- --------
Cash interest expense plus cash dividends on preferred
stock................................................. $169,417 $114,194 $ 83,937 $ 77,303
--------- -------- -------- --------
--------- -------- -------- --------
Ratio of earnings before interest, taxes,
depreciation, amortization and provision for one-time
charges to cash interest expense and cash dividends
on preferred stock.................................... 1.7x 1.9x 1.9x 1.8x
--------- -------- -------- --------
--------- -------- -------- --------
Earnings before interest, taxes, depreciation,
amortization and provision for one-time charges...... $288,751 $216,115 $162,094 $138,242
--------- -------- -------- --------
--------- -------- -------- --------
Interest expense...................................... $140,691 $105,384 $ 78,244 $ 74,336
Dividends on preferred stock.......................... 46,287 28,978 25,959 22,290
--------- -------- -------- --------
Interest expense plus dividends on preferred stock.... $186,978 $134,362 $104,203 $ 96,626
--------- -------- -------- --------
--------- -------- -------- --------
Ratio of earnings before interest, taxes,
depreciation, amortization and provision for one-time
charges to interest expense and dividends on
preferred stock....................................... 1.5x 1.6x 1.6x 1.4x
--------- -------- -------- --------
--------- -------- -------- --------