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CONCENTRA OPERATING CORPORATION
Computation of Ratio of Earnings to Fixed Charges
(Unaudited)
| | Years Ended December 31, | Three Months Ended March 31, | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | 1999 | 2000 | 2001 | 2002 | 2003 | 2003 | 2004 | |||||||||||||||
| | (dollars in thousands) | |||||||||||||||||||||
| Earnings: | ||||||||||||||||||||||
| Income (loss) before income taxes | $ | (17,512 | ) | $ | (2,360 | ) | $ | (14,650 | ) | $ | 1,026 | $ | 49,503 | $ | 9,768 | $ | 14,092 | |||||
| Less: Equity in earnings of unconsolidated subsidiaries net of related distributions | (474 | ) | (1,210 | ) | (3,015 | ) | (850 | ) | 2,805 | 593 | 817 | |||||||||||
| Fixed charges | 46,796 | 80,160 | 80,175 | 79,266 | 71,397 | 18,330 | 17,868 | |||||||||||||||
| Total earnings(1) | $ | 28,810 | $ | 76,590 | $ | 62,510 | $ | 79,442 | $ | 123,705 | $ | 28,691 | $ | 32,777 | ||||||||
Fixed Charges: | ||||||||||||||||||||||
| Interest expense | $ | 35,779 | $ | 68,932 | $ | 67,250 | $ | 63,981 | $ | 56,632 | $ | 14,588 | $ | 14,038 | ||||||||
| Interest portion of rent expense | 11,017 | 11,228 | 12,925 | 15,285 | 14,765 | 3,742 | 3,830 | |||||||||||||||
| Total fixed charges | $ | 46,796 | $ | 80,160 | $ | 80,175 | $ | 79,266 | $ | 71,397 | $ | 18,330 | $ | 17,868 | ||||||||
Ratio of earnings to fixed charges | N/A | N/A | N/A | 1.0x | 1.7x | 1.6x | 1.8x | |||||||||||||||
- (1)
- For purposes of determining the ratio of earnings to fixed charges, earnings include income from continuing operations before income taxes adjusted for fixed charges and equity in earnings of unconsolidated subsidiaries and related distributions. Fixed charges consist of interest on debt, including amortization of debt issuance costs, and 33% of expenses, which we estimate as the interest component of such rentals.
CONCENTRA OPERATING CORPORATION Computation of Ratio of Earnings to Fixed Charges (Unaudited)