EX-12 3 forms3a1_12204ex121.txt EXH. 12.1 Exhibit 12.1
DST SYSTEMS, INC. AND SUBSIDIARY COMPANIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (DOLLARS IN THOUSANDS) Q3 YTD 1998 1999 2000 2001 2002 2003 --------- ---------- ---------- ---------- ---------- ----------- Pretax income from continuing operations before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees $118,313 $207,716 $325,318 $354,977 $310,132 $230,376 Add: Fixed Charges 19,815 19,643 29,351 31,851 38,946 31,141 Amortization of capitalized interest 83 100 118 162 179 124 Distributed earnings of equity investees 9,943 468 92 49 371 102 Subtract: Capitalized interest (147) (285) (852) (1,005) (210) (292) --------- ---------- ---------- ---------- ---------- ----------- Pretax income as adjusted $148,007 $227,642 $354,027 $386,034 $349,418 $261,451 ========= ========== ========== ========== ========== =========== Fixed charges: Interest expense $ 8,591 $ 5,154 $ 5,561 $ 7,452 $13,379 $ 14,260 Interest capitalized 147 285 852 1,005 210 292 --------- ---------- ---------- ---------- ---------- ----------- 8,738 5,439 6,413 8,457 13,589 14,552 Portion of rents representative of an appropriate interest factor 11,077 14,204 22,938 23,394 25,357 16,589 --------- ---------- ---------- ---------- ---------- ----------- Total fixed charges $19,815 $19,643 $29,351 $31,851 $38,946 $31,141 ========= ========== ========== ========== ========== =========== Ratio of earnings to fixed charges 7.5 (1) 11.6 12.1 12.2 (2) 9.0 (3) 8.4 (3)
(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 $2.4 million, respectively. Excluding these costs, the ratio of earnings to fixed charges was 9.3 and 8.5, respectively.