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EXHIBIT 12-1
MCN INVESTMENT CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN THOUSANDS)
TWELVE MONTHS ENDED DECEMBER 31,
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1995 1994 1993 1992 1991
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EARNINGS AS DEFINED(1)(4)
Pre-tax income(2) $ 13,163 $ 6,696 $ 5,003 $ 6,495 $ (1,736)
Fixed charges(3) 24,748 13,640 4,612 2,419 3,142
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Earnings as defined $ 37,911 $ 20,336 $ 9,615 $ 8,914 $ 1,406
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FIXED CHARGES AS DEFINED(1)(4)
Interest, expensed $ 24,151 $ 13,365 $ 4,507 $ 2,327 $ 3,094
Interest, capitalized 5,895 2,089 1,579 211 -
Amortization of debt discounts, premium
and expense 520 275 94 67 21
Interest implicit in rentals 77 - 11 25 27
-------- -------- -------- -------- --------
Fixed charges as defined $ 30,643 $ 15,729 $ 6,191 $ 2,630 $ 3,142
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Ratio of Earnings to Fixed Charges 1.24 1.29 1.55 3.39 0.45(5)
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(1) Earnings and fixed charges are defined and computed in accordance with
Item 503 of Regulation S-K.
(2) This amount represents the aggregate of (a) the pre-tax income from
continuing operations of MCN Investment and its majority-owned
subsidiaries, (b) MCN Investment's share of pre-tax income of its 50% owned
companies, and (c) any income actually received from less than 50% owned
companies.
(3) Fixed charges added to earnings are adjusted to exclude interest
capitalized during the period and, therefore, may differ from fixed charges
as defined.
(4) In April 1996, MCN announced its intention to sell The Genix Group, its
computer services subsidiary. For purposes of calculating the Ratio of
Earnings to Fixed Charges, it has been classified as a discontinued
operation and therefore excluded from the ratio for all periods presented.
(5) Earnings for the year ended December 31, 1991 were not adequate to cover
fixed charges. The amount of the coverage deficiency was $1,736,000.