EXHIBIT 12.1
TOTAL RENAL CARE HOLDINGS, INC.
RATIO OF EARNINGS TO FIXED CHARGES
The ratio of earnings to fixed charges is computed by dividing fixed charges
into earnings. Earnings is defined as pretax income from continuing operations
adjusted by adding fixed charges and excluding interest capitalized during the
period. Fixed charges means the total of interest expense and amortization of
financing costs, and the estimated interest component of rental expense on
operating leases.
Year ended December 31,
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1999 1998 1997 1996 1995
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(in thousands, except for ratio data)
Income before income taxes,
extraordinary items and
cumulative effect of a change
in accounting principle........ $(181,826) $ 48,641 $ 81,178 $54,563 $37,141
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Fixed charges:
Interest expense and
amortization of debt issuance
costs and discounts on all
indebtedness................. 110,797 84,003 29,082 13,670 12,921
Interest portion of rental
expense...................... 17,501 12,992 8,196 5,301 3,346
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Total fixed charges......... 128,298 96,995 37,278 18,971 16,267
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Earnings before income taxes,
extraordinary items, cumulative
effect of a change in
accounting principle and fixed
charges........................ $ (53,528) $145,636 $118,456 $73,534 $53,408
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Ratio of earnings to fixed
charges........................ (a) 1.50 3.18 3.88 3.28
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(a) Due to the Company's loss in 1999, the ratio coverage was less than 1:1.
The Company would have had to generate additional earnings of $182 million
to achieve a coverage of 1:1.