Exhibit 12.1
TOWN SPORTS INTERNATIONAL, INC.
COMPUTATION OF EARNINGS TO FIXED CHARGES
ALL FIGURES $'000, EXCEPT COVERAGE RATIOS
Year ended For the seven months
May 31, ended December, 31, Year ended December 31,
---- -------------------- ----------------------------------------------------
1998 1997 1998 1998 1999 2000 2001 2002
---- ---- ---- ---- ---- ---- ---- ----
Earnings available for fixed
charges:
Income (loss) before
income taxes $ 840 $ 352 ($1,037) ($549) $ 755 $ 10,227 $ 14,429 $ 21,672
Less: income from
investments accounted
for by the equity
method (128) (112) (192) (208) (314) (512) (695) (796)
Add: Cash distributions
from investments
accounted for by the
equity method 198 72 208 334 285 420 809 720
Add: Fixed charges, net
of capitalized interest 11,431 6,011 9,493 14,912 20,093 23,610 27,785 31,620
-------- ------- ------- -------- -------- -------- -------- --------
Total $ 12,341 $ 6,323 $ 8,472 $ 14,489 $ 20,819 $ 33,746 $ 42,328 $ 53,216
Fixed Charges
Interest (includes
amortization of
issuance costs) $ 7,130 $ 3,796 $ 5,551 $ 8,885 $ 11,527 $ 13,120 $ 14,527 $ 16,423
Interest portion of rent
expense 4,301 2,215 3,942 6,027 8,566 10,490 13,258 15,197
Capitalized interest 526 65 308 769 436 660 907 354
-------- ------- ------- -------- -------- -------- -------- --------
Total $ 11,957 $ 6,076 $ 9,801 $ 15,681 $ 20,530 $ 24,270 $ 28,692 $ 31,974
Coverage (deficit):
Earnings to fixed charges 1.0 1.0 (1,329) (1,192) 1.0 1.4 1.5 1.7
Three Months Ended
March 31,
--------------------------------
PRO PRO
FORMA FORMA
2002 2002 2003 2003
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Earnings available for fixed
charges:
Income (loss) before
income taxes $ 11,120 $ 4,807 $ 9,940 $ 7,406
Less: income from
investments accounted
for by the equity
method (796) (156) (210) (210)
Add: Cash distributions
from investments
accounted for by the
equity method 720 77 198 198
Add: Fixed charges, net
of capitalized interest 42,172 7,831 8,366 10,900
-------- -------- -------- --------
Total $ 53,216 $ 12,559 $ 18,294 18,294
Fixed Charges
Interest (includes
amortization of
issuance costs) $ 26,975 $ 4,085 $ 4,210 $ 6,744
Interest portion of rent
expense 15,197 3,746 4,156 4,156
Capitalized interest 354 92 97 97
-------- -------- -------- --------
Total $ 42,526 $ 7,923 $ 8,463 10,997
Coverage (deficit):
Earnings to fixed charges 1.3 1.6 2.2 1.7