EX-12.1 5 dex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

Exhibit 12.1

Circuit City Stores, Inc.

Computation of Ratio of Earnings to Fixed Charges

(Unaudited)

 

      Years Ended February 29 or 28  

(Amounts in thousands)

   2008     2007     2006     2005     2004  

(Loss) Earnings:

          

(Loss) earnings from continuing operations before income taxes

   $ (353,579 )   $ 20,328     $ 233,445     $ 96,965     $ (1,240 )

Fixed charges

     139,586       133,339       123,402       121,721       109,653  

Amortization of capitalized interest

     2,817       1,954       1,171       828       785  

Capitalized interest

     (7,773 )     (8,027 )     (4,988 )     (2,940 )     (1,115 )
                                        

Total (loss) earnings

   $ (218,949 )   $ 147,594     $ 353,030     $ 216,574     $ 108,083  
                                        

Fixed Charges:

          

Interest expense

   $ 1,180     $ 1,519     $ 3,143     $ 4,451     $ 4,202  

Capitalized interest

     7,773       8,027       4,988       2,940       1,115  

Amortization of debt issuance costs

     910       615       734       923       551  

Estimate of interest within rental expense

     129,723       123,178       114,537       113,407       103,785  
                                        

Total fixed charges

   $ 139,586     $ 133,339     $ 123,402     $ 121,721     $ 109,653  
                                        

Ratio of earnings to fixed charges

     *       1.1       2.9       1.8       *  

 

* Due to our losses in the fiscal years ended February 29, 2008, and February 29, 2004, the ratio for these periods was less than 1:1. We would have had to generate additional earnings of $358.5 million and $1.6 million in the fiscal years ended February 29, 2008, and February 29, 2004, respectively, to achieve a coverage ratio of 1:1.