1
EXHIBIT 12.1
STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS
TO FIXED CHARGES
(DOLLARS IN THOUSANDS, EXCEPT NOTES AND STATISTICAL DATA)
THE COMPANY
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HISTORICAL
----------------
THE COMPANY'S PREDECESSOR -- HISTORICAL
--------------------------------------- HISTORICAL THREE
PERIOD FROM PERIOD FROM --------------------------------- PRO FORMA(1) MONTHS
JANUARY 1 AUGUST 14 ------------ ENDED
YEAR ENDED THROUGH THROUGH YEAR ENDED DECEMBER 31, YEAR ENDED MARCH 31,
DECEMBER 31, AUGUST 14, DECEMBER 31, --------------------------------- DECEMBER 31, ----------------
1991 1992 1992 1993 1994 1995 1995 1995 1996
------------ ----------- ------------ -------- ------- ------------ ------------ ------ --------
Earnings:
Consolidated pretax
income (loss) from
continuing
operations........ $(48,084) $ (24,482) $ (7,175) $(53,789) $ 8,174 $ (4,911) $(11,478) $2,233 $(13,062)
Minority interest in
net income (loss)
of subsidiaries
with fixed
charges........... -- -- -- -- (77) (5,218) 232 (283) 93
Equity in net loss
(income) of less-
than-50% owned
affiliate with no
guaranteed debt... -- -- -- -- 86 (35) (35) 4 9
Interest, expensed
and capitalized,
including
amortization of
debt discount and
premium and
issuance
expense........... 31,511 18,751 1,398 5,322 6,139 14,958 14,958 1,976 9,986
Interest portion of
rental expense.... 20,338 9,985 5,444 10,690 5,495 2,135 2,135 653 1,207
Less interest
capitalized during
this period....... (50) (2) -- (379) (34) (361) (361) (103) (116)
-------- -------- ------- -------- ------ ------ -------- ------ --------
Earnings............ $ 3,715 $ 4,252 $ (333) $(38,156) $19,783 $ 6,568 $ 5,451 $4,480 $ (1,883)
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Fixed Charges:
Interest, expensed
and capitalized,
including
amortization of
debt discount and
premium and
issuance
expense........... $ 31,511 $ 18,751 $ 1,398 $ 5,322 $ 6,139 $ 14,958 $ 14,958 $1,976 $ 9,986
Interest portion of
rental expense.... 20,338 9,985 5,444 10,690 5,495 2,135 2,135 653 1,207
Preferred stock
dividend
requirements of
majority-owned
subsidiaries
(non-intercompany)... -- -- -- 209 249 210 210 68 --
-------- -------- ------- -------- ------ ------ -------- ------ --------
Fixed Charges....... $ 51,849 $ 28,736 $ 6,842 $ 16,221 $11,883 $ 17,303 $ 17,303 $2,697 $ 11,193
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Ratio of Earnings to
Fixed Charges
(Deficiency)(2)..... $(48,134) $ (24,484) $ (7,175) $(54,377) 1.66x $(10,735) $(11,852) $ 1.66x $(13,076)
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(1) The pro forma amounts reflect the historical operations of the Company as
adjusted to reflect the impact of the purchase of Switched Services as if
the acquisition had occurred on January 1, 1995 for operations data.
(2) Where earnings were inadequate to cover fixed charges, the deficiency is
shown.