EXHIBIT 12.1
COMPUTATION OF EARNINGS TO FIXED CHARGES
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| | InSight (Predecessor) | | | Holdings | |
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| | | | | | | | Pro forma | |
| | | | Period | | | | | Pro forma | | | For the Three | | | for the | |
| | Year | | | from | | | | | for Year | | | Months Ended | | | Three Months | |
| | Ended | | | July 1 to | | | Years Ended June 30, | | | Ended | | | September 30, | | | Ended | |
| | June 30, | | | October 17, | | | | | | June 30, | | | | | | September 30, | |
| | 2001 | | | 2001 | | | 2002 | | | 2003 | | | 2004 | | | 2005 | | | 2005 | | | 2004 | | | 2005 | | | 2005 | |
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Earnings: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Pretax income (loss) from continuing operations | | $ | 16,425 | | | $ | (6,748 | ) | | $ | 9 | | | $ | 8,188 | | | $ | 4,874 | | | $ | (12,148 | ) | | $ | (13,737 | ) | | $ | (1,310 | ) | | $ | (1,347 | ) | | $ | (2,161 | ) |
| Fixed charges | | | 28,757 | | | | 7,888 | | | | 35,979 | | | | 40,191 | | | | 43,778 | | | | 49,409 | | | | 50,998 | | | | 11,975 | | | | 13,464 | | | | 14,278 | |
| Distributions received from unconsolidated partnerships | | | 970 | | | | 134 | | | | 965 | | | | 1,009 | | | | 2,054 | | | | 2,621 | | | | 2,621 | | | | 652 | | | | 753 | | | | 753 | |
| Less-Equity in earnings of unconsolidated partnerships | | | 971 | | | | 382 | | | | 437 | | | | 1,744 | | | | 2,181 | | | | 2,613 | | | | 2,613 | | | | 400 | | | | 833 | | | | 833 | |
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| | Total earnings | | $ | 45,181 | | | $ | 892 | | | $ | 36,516 | | | $ | 47,644 | | | $ | 48,525 | | | $ | 37,269 | | | $ | 37,269 | | | $ | 10,917 | | | $ | 12,037 | | | $ | 12,037 | |
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Fixed Charges: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest expense | | $ | 24,315 | | | $ | 6,536 | | | $ | 32,856 | | | $ | 37,738 | | | $ | 40,936 | | | $ | 45,558 | | | $ | 47,147 | | | $ | 11,080 | | | $ | 12,374 | | | $ | 13,188 | |
| Interest factor of rental expense | | | 4,442 | | | | 1,352 | | | | 3,123 | | | | 2,453 | | | | 2,842 | | | | 3,851 | | | | 3,851 | | | | 895 | | | | 1,090 | | | | 1,090 | |
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| | Total fixed charges | | $ | 28,757 | | | $ | 7,888 | | | $ | 35,979 | | | $ | 40,191 | | | $ | 43,778 | | | $ | 49,409 | | | $ | 50,998 | | | $ | 11,975 | | | $ | 13,464 | | | $ | 14,278 | |
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Ratio of Earnings to Fixed Charges | | | 1.6 | x | | | — | | | | 1.0 | x | | | 1.2 | x | | | 1.1 | x | | | — | | | | — | | | | — | | | | — | | | | — | |
The ratio of earnings to fixed charges is unaudited for all periods presented. For purpose of calculating this ratio, earnings consist of net income (loss) plus income taxes and fixed charges. Fixed charges consist of interest expense and the estimated portion of rental expense deemed a reasonable approximation of this interest factor. For the year ended June 30, 2005 on an actual and pro forma basis to give pro forma affect to the offering of the initial notes as if it had been completed on July 1, 2004, we had a deficiency of earnings to fixed charges of approximately $12.1 million and $13.7 million, respectively. For the three months ended September 30, 2005 and 2004, we had a deficiency of earnings to fixed charges of approximately $1.1 million and $1.4 million, respectively. For the three months ended September 30, 2005 on a pro forma basis to give pro forma affect to the offering of the initial notes as if it had been completed on July 1, 2005, we had a deficiency of earnings to fixed charges of approximately $2.2 million. On October 17, 2001, Holdings acquired InSight pursuant to an agreement and plan of merger dated June 29, 2001, as amended. Holdings did not have any operating activities until October 17, 2001. The ratio of earnings to fixed charges for the year ended June 30, 2002 reflects the results for the entire fiscal year 2002 and does not include the results of operations of InSight from July 1, 2001 to October 17, 2001. For the period from July 1 to October 17, 2001, InSight had a deficiency of earnings to fixed charges of approximately $7.0 million.