Exhibit 12.1
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
MTS, Incorporated and Subsidiaries
Computation of Ratio of Earnings to Fixed Charges
(dollars in millions)
Nine Months
Ended
Fiscal Year Ended July 31, April 30,
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1993 1994 1995 1996 1997 1997 1998
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Earnings:
Income before taxes $24.7 $27.4 $26.2 $17.2 $9.5 $11.9 $15.2
Add fixed charges (from below) 18.2 22.3 31.0 37.2 37.6 28.5 27.5
Adjusted earnings $42.9 $49.7 $57.2 $54.4 $47.1 $40.4 $42.7
Fixed charges:
Interest (a) $ 7.1 $ 8.2 $12.2 $15.3 $14.7 $11.4 $10.3
Interest factor on lease rentals (b) 11.1 14.1 18.8 21.9 22.9 17.1 17.2
Total fixed charges $18.2 $22.3 $31.0 $37.2 $37.6 $28.5 $27.5
Ratio of earnings to fixed charges 2.4x 2.2x 1.8x 1.5x 1.3x 1.4x 1.6x
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(a) Interest includes interest expense, interest costs capitalized and the
amortization of deferred financing costs.
(b) Interest factor on lease rentals includes 35% of rental expense
representing management's determination of a reasonable approximation of
interest costs on rents.