EXHIBIT 12.1
RADNET, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(in thousands)
(unaudited)
Three Months Ended | Nine Months Ended | Years Ended | Two Months Ended | Years Ended | ||||||||||||||||||||||||||||||||||||||||||||
September 30, | September 30, | December 31, | December 31, | October 31, | ||||||||||||||||||||||||||||||||||||||||||||
2010 | 2009 | 2010 | 2009 | 2009 | 2008 | 2007 | 2006 | 2006 | 2005 | 2006 | 2005 | |||||||||||||||||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||||||||||||||||||||||||||
Pre-tax net loss (1) | $64 | $(1,471 | ) | $(15,554 | ) | $(2,554 | ) | $(1,732 | ) | $(12,582 | ) | $(17,196 | ) | $(17,657 | ) | $(10,918 | ) | $(155 | ) | $(6,894 | ) | $(3,570 | ) | |||||||||||||||||||||||||
Less: Equity in earnings of unconsolidated joint ventures | (2,282 | ) | (1,751 | ) | (6,114 | ) | (6,839 | ) | (8,456 | ) | (9,791 | ) | (5,944 | ) | (586 | ) | (503 | ) | - | (83 | ) | - | ||||||||||||||||||||||||||
Plus: Distributions from unconsolidated joint ventures | 2,795 | 2,489 | 8,339 | 6,852 | 7,667 | 7,982 | 6,464 | 179 | 179 | - | - | - | ||||||||||||||||||||||||||||||||||||
Fixed charges | 16,932 | 14,173 | 54,937 | 44,482 | 57,521 | 66,302 | 58,059 | 34,532 | 12,569 | 3,433 | 25,396 | 20,132 | ||||||||||||||||||||||||||||||||||||
Total adjusted earnings | $17,509 | $13,440 | $41,608 | $41,941 | $55,000 | $51,911 | $41,383 | $16,468 | $1,327 | $3,278 | $18,419 | $16,562 | ||||||||||||||||||||||||||||||||||||
Fixed charges: | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense (including debt issue costs amortized to interest expense) | $12,781 | $12,367 | $35,477 | $38,538 | $49,193 | $51,811 | $44,294 | $23,012 | $5,620 | $2,970 | $20,362 | $17,493 | ||||||||||||||||||||||||||||||||||||
Write-off of debt issue costs | - | 7,559 | - | - | - | - | 7,009 | 4,912 | - | 2,097 | - | |||||||||||||||||||||||||||||||||||||
Portion of rent expense representative of the interest factor (2) | 4,151 | 3,632 | 11,901 | 10,839 | 14,447 | 14,491 | 13,765 | 4,511 | 2,037 | 463 | 2,937 | 2,639 | ||||||||||||||||||||||||||||||||||||
Fair value adjustments of cash flow hedges reclassified from OCI to interest expense | - | (1,826 | ) | - | (4,895 | ) | (6,119 | ) | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Total fixed charges | $16,932 | $14,173 | $54,937 | $44,482 | $57,521 | $66,302 | $58,059 | $34,532 | $12,569 | $3,433 | $25,396 | $20,132 | ||||||||||||||||||||||||||||||||||||
Ratio of earnings to fixed charges | 1.03 | 0.95 | 0.76 | 0.94 | 0.96 | 0.78 | 0.71 | 0.48 | 0.11 | 0.95 | 0.73 | 0.82 | ||||||||||||||||||||||||||||||||||||
Additional earnings required to have a one-to-one ratio of earnings to fixed charges | $(577 | ) | $733 | $13,329 | $2,541 | $2,521 | $14,391 | $16,676 | $18,064 | $11,242 | $155 | $6,977 | $3,570 |
(1) Excludes net income attributable to noncontrolling interests
(2) Represents one-third of operating lease costs, which approximates the portion that relates to the interest portion