EXHIBIT 12.1
RADNET, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(in thousands)
(unaudited)
Nine Months Ended | Years Ended | |||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
Pre-tax net loss (1) | $ | (3,521 | ) | $ | 5,886 | $ | 4,377 | $ | 8,162 | $ | (12,109 | ) | $ | (1,732 | ) | |||||||||
Less: Equity in earnings of unconsolidated joint ventures | (4,722 | ) | (6,194 | ) | (6,476 | ) | (5,224 | ) | (4,952 | ) | (5,209 | ) | ||||||||||||
Plus: Distributions from unconsolidated joint ventures | 7,358 | 7,204 | 6,477 | 4,993 | 7,639 | 4,420 | ||||||||||||||||||
Fixed charges | 43,524 | 54,891 | 61,352 | 59,028 | 61,751 | 49,965 | ||||||||||||||||||
Total adjusted earnings | $ | 42,639 | $ | 61,787 | $ | 65,730 | $ | 66,959 | $ | 52,329 | $ | 47,444 | ||||||||||||
Fixed charges: | ||||||||||||||||||||||||
Interest expense (including debt issue costs amortized to interest expense) | $ | 32,503 | $ | 45,791 | $ | 53,783 | $ | 52,798 | $ | 48,398 | $ | 50,016 | ||||||||||||
Adjustments to exclude fair value of cash flow hedges reclassified from OCI to interest expense | - | - | (918 | ) | (1,225 | ) | (917 | ) | (6,119 | ) | ||||||||||||||
Write-off of debt issue costs | 4,389 | - | - | - | 7,559 | - | ||||||||||||||||||
Portion of rent expense representative of the interest factor (2) | 6,632 | 9,100 | 8,487 | 7,455 | 6,711 | 6,068 | ||||||||||||||||||
Total fixed charges | $ | 43,524 | $ | 54,891 | $ | 61,352 | $ | 59,028 | $ | 61,751 | $ | 49,965 | ||||||||||||
Ratio of earnings to fixed charges | - | 1.13 | 1.07 | 1.13 | - | - | ||||||||||||||||||
Additional earnings required to have a one-to-one ratio of earnings to fixed charges | $ | 885 | $ | - | $ | - | $ | - | $ | 9,422 | $ | 2,521 |
(1) | Includes net income attributable to noncontrolling interests applicable to fixed charges |
(2) | Represents 14% of operating lease costs, which approximates the portion that relates to the interest portion based on our estimated incremental borrowing rate |