Exhibit 12.1
US Oncology Holdings, Inc.
Computation of Ratio of Earnings to Fixed Charges
| Predecessor | Successor | Pro Forma | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Period from January 1, 2004 through August 20, 2004 | Period from August 21, 2004 through December 31, 2004 | Year Ended December 31, 2005 | Six Months Ended June 30, 2006 | Year Ended December 31, 2006 | Six Months Ended June 30, 2007 | Year Ended December 31, 2006 | Six Months Ended June 30, 2007 | |||||||||
| | (dollars in thousands) | |||||||||||||||
Net income (loss) before income taxes | 48,257 | 37,107 | 32,912 | 27,023 | 45,084 | (20,766 | ) | 21,534 | (26,215 | ) | |||||||
Fixed Charges: | |||||||||||||||||
Interest expense incurred | 16,000 | 30,144 | 102,543 | 57,172 | 117,088 | 66,169 | 140,638 | 71,618 | |||||||||
Interest portion of lease expense | 13,878 | 8,458 | 24,653 | 12,956 | 26,362 | 14,483 | 26,362 | 14,483 | |||||||||
Accretion of preferred stock dividends | — | 10,768 | 22,168 | 9,761 | 20,104 | 11,415 | 20,104 | 11,415 | |||||||||
Total fixed charges | 29,878 | 49,370 | 149,364 | 79,889 | 163,554 | 92,067 | 187,104 | 97,516 | |||||||||
Net income before income taxes and fixed charges | 78,135 | 86,477 | 182,276 | 106,912 | 208,638 | 71,301 | 208,638 | 71,301 | |||||||||
Ratio of earnings to fixed charges | 2.6 | x | 1.8 | x | 1.2 | x | 1.3 | x | 1.3 | x | N/A* | 1.1 | x | N/A* |
- (1)
- The ratio of earnings to fixed charges was calculated by dividing (i) net income (loss) before income taxes and fixed charges by (ii) fixed charges which consist of interest expense incurred, including amortization of debt expense and discount, one-third of rental expense, which approximates the interest portion of our rental expense, and accretion of preferred stock dividends.
- *
- For the six months ended June 30, 2007 and the corresponding pro forma period, earnings before fixed charges were insufficient to cover fixed charges by $20.8 million and $26.2 million, respectively.