Exhibit 12.1
Computation of Ratios of Earnings to Fixed Charges
(in thousands, except ratios)
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| | Year ended December 31, | | Pro Forma Year ended December 31, 2005(1)(2) |
| | 2001 | | 2002 | | 2003 | | 2004 | | 2005 | |
Income before income taxes | | $ | 52,797 | | $ | 78,281 | | $ | 87,799 | | $ | 97,610 | | $ | 105,574 | | $ | 109,148 |
Add: | | | | | | | | | | | | | | | | | | |
Interest expense | | | 18,090 | | | 14,854 | | | 14,632 | | | 13,512 | | | 14,420 | | | 9,775 |
Reductions of previously capitalized interest | | | — | | | — | | | — | | | — | | | 107 | | | 107 |
Discount on accounts receivable securitization | | | 4,330 | | | 1,782 | | | 757 | | | 261 | | | — | | | — |
Distributions on mandatorily redeemable preferred securitization | | | 7,095 | | | 7,034 | | | 2,898 | | | — | | | — | | | — |
Portion of rents representative of the interest factor | | | 10,351 | | | 10,961 | | | 11,320 | | | 11,738 | | | 12,587 | | | 12,587 |
| | | | | | | | | | | | | | | | | | |
Income as adjusted | | $ | 92,663 | | $ | 112,912 | | $ | 117,406 | | $ | 123,121 | | $ | 132,688 | | $ | 131,617 |
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Fixed charges: | | | | | | | | | | | | | | | | | | |
Interest expense | | | 18,090 | | | 14,854 | | | 14,632 | | | 13,512 | | | 14,420 | | | 9,775 |
Capitalized interest | | | — | | | — | | | 236 | | | 366 | | | 1,296 | | | 1,296 |
Discount on accounts receivable securitization | | | 4,330 | | | 1,782 | | | 757 | | | 261 | | | — | | | — |
Distributions on mandatorily redeemable preferred securities | | | 7,095 | | | 7,034 | | | 2,898 | | | — | | | — | | | — |
Portion of rents representative of | | | | | | | | | | | | | | | | | | |
the interest factor | | | 10,351 | | | 10,961 | | | 11,320 | | | 11,738 | | | 12,587 | | | 12,587 |
| | | | | | | | | | | | | | | | | | |
Fixed charges | | $ | 39,866 | | $ | 34,631 | | $ | 29,843 | | $ | 25,877 | | $ | 28,303 | | $ | 23,658 |
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Ratio of earnings to fixed charges | | | 2.3x | | | 3.3x | | | 3.9x | | | 4.8x | | | 4.7x | | | 5.6x |
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(1) | Gives effect to the completion of the offering by Owens & Minor, Inc. (the “Company”) of up to $200.0 million of its Senior Notes due 2016 (the “Notes”) and the application of the net proceeds therefrom, together with cash on hand, as described in “Use of Proceeds” in the prospectus included in the Registration Statement (the “Prospectus”). Also assumes that all of the Company’s outstanding $200.0 million aggregate principal amount of 8½% Senior Subordinated Notes due 2011 will be validly tendered and accepted for purchase in the tender offer described in the Prospectus. |
(2) | Assumes an interest rate of 6 3/8% for the Notes. A change of 0.125% in the interest rate applicable to the Notes would change the Company’s annualized interest expense by approximately $0.3 million. |