Emmis Communications Corporation and Emmis Operating Company
Computation of Company Leverage Ratios
As of February 28, 2003
Dollars in Thousands
Computation of Emmis Operating Company Senior Leverage Ratio
Under the Fourth Amended and Restated Revolving Credit and
Term Loan Agreement:
Numerator:
Senior credit facility debt outstanding 706,898
Plus: Letters of credit outstanding 1,437
Plus: Mark-to-market derivative instruments 4,194
Plus: Other 416
Total senior debt outstanding, as defined 712,945
Denominator:
Trailing twelve-months operating income 125,855
Plus: Depreciation and amortization 43,370
Plus: Noncash compensation 22,528
Less: Net revenues of assets disposed (1,238)
Plus: Operating expenses of assets disposed 708
Plus/Less: Other reconciling items as defined in indenture (591)
Total pro forma EBITDA, as defined 190,632
Senior debt leverage ratio 3.74
Computation of Emmis Operating Company Total Leverage Ratio
Under the Fourth Amended and Restated Revolving Credit and
Term Loan Agreement:
Numerator:
Senior debt outstanding, as defined (see above) 712,945
Plus: Senior subordinated debt outstanding 300,000
Total Emmis Operating Company debt outstanding, as defined 1,012,945
Denominator:
Total pro forma EBITDA, as defined (see above) 190,632
Emmis Operating Company total leverage ratio 5.31
Computation of Emmis Communications Corporation Total Leverage
Ratio Under the Senior Discount Notes Indenture:
Numerator:
Emmis Operating Company debt outstanding, as defined (see above) 1,012,945
Plus: Senior discount notes outstanding 197,845
Total Emmis Communications Corporation debt outstanding, as defined 1,210,790
Denominator:
Trailing twelve-months operating income 125,855
Plus: Depreciation and amortization 43,370
Plus: Noncash compensation 22,528
Less: Net revenues of assets disposed (1,238)
Plus: Operating expenses of assets disposed 708
Plus/Less: Other reconciling items as defined in indenture (4,185)
Total pro forma EBITDA, as defined 187,038
Emmis Communications Corporation total leverage ratio 6.47