Exhibit 12.1
KANSAS CITY SOUTHERN INDUSTRIES, INC.
AND SUBSIDIARY COMPANIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
As of December 31st As of March 31st
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1997 1998 1999 2000 2001 2001 2002
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Pretax income (loss) from continuing
operations, excluding equity in earnings
of unconsolidated affiliates $(141.0) $68.0 $12.0 $(2.0) $ 6.8 $(8.1) $10.9
Interest Expense on Indebtedness 53.3 59.6 57.4 65.8 52.8 15.2 11.3
Interest Differencial on Term Bank Debt
Refinance with Notes and Common Stock
Portion of Rents Representative of an 17.2 17.8 15.4 17.2 17.0 4.3 4.0
Appropriate Interest Factor
Distributed income of equity investments - 5.0 - 5.0 3.0 3.0 -
Income (Loss) as Adjusted $ 77.9 $77.4 $72.8 $83.0 $74.0 $20.6 $16.1
Fixed Charges:
Interest Expense on Indebtedness $ 53.3 $59.6 $57.4 $65.8 $52.8 $15.2 $11.3
Interest Differencial on Term Bank Debt
Refinance with Notes and Common Stock
Capitalized Interest 7.4 - - - 4.2 1.1 0.8
Portion of Rents Representative of an
Appropriate Interest Factor 17.2 17.8 15.4 17.2 17.0 4.3 4.0
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Total Fixed Charges $ 77.9 $77.4 $72.8 $83.0 $74.0 $20.6 $16.1
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Ratio of Earnings to Fixed Charges = (a) 1.9 1.2 (b) 1.0 1.1 - (c) 1.6
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Note: Excludes amortization expense on debt discount due to immateriality
(a) Due to restructuring, asset impairment and other charges
of $178.0 million, the 1997 ratio of earnings to fixed
charges coverage was less than 1:1. The ration of earnings
to fixed charges would have been 1:1 if a deficiency of
$148.4 million was eliminated. Excluding these items, the
ratio of earnings to fixed charges for 1997 would have been
1.4x.
(b) Includes unusual costs of $12.7 million. Excluding these
items, the ratio of earnings to fixed charges for 1999 would
have been 1.3x.
(c) The ratio of earnings to fixed charges would have been
1:1 if a deficiency of $6.2 million was eliminated.