EX-12.1 5 a2073043zex-12_1.txt EXHIBIT 12.1 EXHIBIT 12.1 AMC ENTERTAINMENT INC. AND SUBSIDIARIES RATIO OF EARNINGS TO FIXED CHARGES (Dollars in thousands)
Actual Actual Actual Year Actual Year 39 weeks ended 39 weeks ended 52 weeks ended 52 weeks ended December 27, December 28, March 29, March 30, 2001 2000 2001 2000 -------------- -------------- -------------- ------------- EARNINGS Earnings (loss) before income taxes and cumulative effect accounting changes .......................................... $ (2,273) $ (41,660) $ (135,826) $ (81,247) Add: Fixed charges (below) ................................. 104,491 118,021 157,624 136,856 Depreciation on capitalized interest .................. 898 817 1,107 845 Less: Interest capitalized (below) .......................... (2,005) (3,062) (4,186) (7,899) Undistributed (income) loss-Joint Ventures ............ 228 2,898 2,970 2,065 ----------- ------------ ------------ ---------- Earnings for ratio ...................................... 101,339 77,014 21,689 50,620 ----------- ------------ ------------ ---------- FIXED CHARGES: Interest on borrowings ..................................... 33,927 48,533 64,347 54,088 Interest on capital and financing lease obligations ........ 9,773 9,537 12,653 8,615 Interest capitalized ....................................... 2,005 3,062 4,186 7,899 Estimated interest portion of rental expense(1) ............ 58,786 56,889 76,438 66,254 ----------- ------------ ------------ ---------- Fixed Charges ........................................... 104,491 118,021 157,624 136,856 ----------- ------------ ------------ ---------- FIXED CHARGES IN EXCESS OF EARNINGS ......................... $ 3,152 $ 41,007 $ 135,935 $ 86,236 =========== ============ ============ ========== RATIO OF EARNINGS TO FIXED CHARGES .......................... -- -- -- -- =========== ============ ============ ========== Actual Year Actual Year Actual Year 52 weeks ended 52 weeks ended 52 weeks ended April 1, April 2, April 3, 1999 1998 1997 -------------- -------------- -------------- EARNINGS Earnings (loss) before income taxes and cumulative effect accounting changes ......................................... $ (26,516) $ (41,099) $ 31,895 Add: Fixed charges (below) ................................ 100,791 79,417 52,231 Depreciation on capitalized interest ................. 350 1,016 410 Less: Interest capitalized (below) ......................... (7,040) (8,264) (3,344) Undistributed (income) loss-Joint Ventures ........... (10) (133) (191) ----------- ------------ ------------ Earnings for ratio ..................................... 67,575 30,937 81,001 ----------- ------------ ------------ FIXED CHARGES: Interest on borrowings .................................... 30,195 26,366 12,194 Interest on capital and financing lease obligations ....... 8,433 9,326 10,006 Interest capitalized ...................................... 7,040 8,264 3,344 Estimated interest portion of rental expense(1) ........... 55,123 35,461 26,687 ----------- ------------ ------------ Fixed Charges .......................................... 100,791 79,417 52,231 ----------- ------------ ------------ FIXED CHARGES IN EXCESS OF EARNINGS ........................ $ 33,216 $ 48,480 $ -- =========== ============ ============ RATIO OF EARNINGS TO FIXED CHARGES ......................... -- -- 1.6 =========== ============ ============ ----------------------------- The ratio of earnings to fixed charges represents the number of times fixed charges are covered by earnings. For purposes of computing this ratio, earnings consist of income (loss) before income taxes and cumulative effect of accounting changes, plus fixed charges except capitalized interest. Fixed charges consist of interest expense (including amortization of debt issuance costs), and one-third of rent expense on operating leases, estimated by the Company to be representative of the interest factor attributable to such rent expense.
(1) Used one-third of rent expense on operating leases.