Exhibit 12.1
DST SYSTEMS, INC.
AND SUBSIDIARY COMPANIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN THOUSANDS)
9 MONTHS YEARS ENDED DECMEBER 31, 2004
ENDED
SEPTEMBER --------------------------------------------------------------
30, 2004 2003 2002 2001 2000 1999
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Pretax income from continuing
operations before adjustment for
minority interests in
consolidated subsidiaries or
income or loss from equity $220,785 $417,707 $310,132 $354,977 $325,318 $207,716
investees
Add:
Fixed Charges 53,833 50,328 38,946 31,851 29,351 19,643
Amortization of capitalized interest 139 167 179 162 118 100
Distributed earnings of equity investees - 102 371 49 92 468
Subtract:
Capitalized interest (597) (571) (210) (1,005) (852) (285)
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Pretax income as adjusted $274,160 $467,734 $349,418 $386,034 $354,027 $227,642
========= ========== ========= ========= ========= =========
Fixed charges:
Interest expense $40,676 $26,877 $13,379 $ 7,452 $ 5,561 $ 5,154
Interest capitalized 597 571 210 1,005 852 285
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41,273 27,448 13,589 8,457 6,413 5,439
Portion of rents representative of an
appropriate interest factor 12,560 22,880 25,357 23,394 22,938 14,204
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Total fixed charges $53,833 $50,328 $38,946 $31,851 $29,351 $19,643
========= ========== ========= ========= ========= =========
Ratio of earnings to fixed charges 5.1 9.3 (3) 9.0(3) 12.1 (2) 12.1 11.6
(1) In 1998, the Company recognized $33.1 million in merger and integrated
costs related to the USCS International, Inc. and Custima International
acquisition. Excluding these merger charges, the ratio of earnings to fixed
charges was 9.1.
(2) In 2001, the Company recognized a $32.8 million pretax gain on the sale of
its Portfolio Accounting System (PAS) business to State Street Corporation.
Excluding the gain on the sale, the ratio of earnings to fixed charges was
11.1.
(3) In 2002 and 2003, the Company recorded costs associated with facility
consolidations in its Output Solutions segment of $12.0 million and $2.6
million, respectively. In 2003, the Company recorded a gain from the sale
of OMS of $108.9 million and the additional cost associated with Option
Reload Cancellation of $15.9 million. Excluding these material items, the
2002 and 2003 ratio of earnings to fixed charges was 9.3 and 7.5,
respectively.