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MAGELLAN HEALTH SERVICES, INC AND CONSOLIDATED SUBSIDIARIES
COMBINED WITH UNCONSOLIDATED SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERENCE DIVIDENDS
(Dollars in thousands)
| 1996 | 1997 | 1998 | 1999 | 2000 | Six months ended 3/31/2001 | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
EARNINGS: | ||||||||||||||||||||||
Income (loss) from continuing operations before income taxes, minority interest, and extraordinary items | $ | (71,645 | ) | $ | (56,163 | ) | $ | (8,931 | ) | $ | 37,457 | $ | 17,698 | $ | 49,753 | |||||||
Less: | ||||||||||||||||||||||
Equity in (earnings) / loss from unconsolidated subsidiaries | 2,005 | 5,567 | (12,795 | ) | (20,442 | ) | (9,792 | ) | (28,223 | ) | ||||||||||||
Income (loss) from continuing operations before income taxes, minority interest, extraordinary items and equity in (earnings) / loss of unconsolidated subsidiaries | (69,640 | ) | (50,596 | ) | (21,726 | ) | 17,015 | 7,906 | 21,530 | |||||||||||||
Add: | ||||||||||||||||||||||
Interest expense | 58,548 | 55,482 | 87,290 | 104,156 | 106,711 | 55,532 | ||||||||||||||||
Portion of rents representative of interest factor | 1,797 | 2,586 | 7,859 | 10,765 | 11,349 | 5,275 | ||||||||||||||||
Cash distributions from unconsolidated subsidiaries | — | — | 11,441 | 21,970 | 14,324 | 9,468 | ||||||||||||||||
— | — | — | ||||||||||||||||||||
Total fixed charges | 60,345 | 58,068 | 106,590 | 136,891 | 132,384 | 70,275 | ||||||||||||||||
Total earnings | $ | (9,295 | ) | $ | 7,472 | $ | 84,864 | $ | 153,906 | $ | 140,290 | $ | 91,805 | |||||||||
FIXED CHARGES AND PREFERENCE DIVIDENDS: | ||||||||||||||||||||||
Interest expense | $ | 58,548 | $ | 55,482 | $ | 87,290 | $ | 104,156 | $ | 106,711 | $ | 55,532 | ||||||||||
Portion of rents representative of interest factor | 1,797 | 2,586 | 7,859 | 10,765 | 11,349 | 5,275 | ||||||||||||||||
Capitalized interest | — | — | 513 | 673 | — | — | ||||||||||||||||
Less: | ||||||||||||||||||||||
Fixed charges of certain unconsolidated subsidiaries | — | — | — | |||||||||||||||||||
Total fixed charges before preference dividends | 60,345 | 58,068 | 95,662 | 115,594 | 118,060 | 60,807 | ||||||||||||||||
Preferred dividend requirement | — | — | — | — | 3,802 | 2,481 | ||||||||||||||||
Effective tax rate (1) | N/A | N/A | N/A | N/A | 50.8 | % | 49.0 | % | ||||||||||||||
Preferred dividend factor on pre-tax basis | — | — | — | — | 7,731 | 4,864 | ||||||||||||||||
Combined fixed charges and preference dividends | $ | 60,345 | $ | 58,068 | $ | 95,662 | $ | 115,594 | $ | 125,790 | $ | 65,671 | ||||||||||
Ratio of earnings (dollar amount of deficiency) to fixed charges | $ | (69,640 | ) | $ | (50,596 | ) | $ | (10,798 | ) | 1.3 | 1.1 | 1.4 | ||||||||||
- (1)
- Represents income from continuing operations before provision for income taxes divided by income from continuing operations, which adjusts dividends on preferred stock to a pre-tax basis.
MAGELLAN HEALTH SERVICES, INC AND CONSOLIDATED SUBSIDIARIES COMBINED WITH UNCONSOLIDATED SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERENCE DIVIDENDS (Dollars in thousands)