EXHIBIT 12.1
PARACELSUS HEALTHCARE CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(IN THOUSANDS, EXCEPT RATIO AND UNAUDITED)
FOR THE FISCAL YEAR ENDED SEPTEMBER 30,
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HISTORICAL PRO FORMA(1) PRO FORMA(2)
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1991 1992 1993 1994 1995 1995 1995
Income (loss) before minority
interests, income taxes,
cumulative effect of accounting
change and extraordinary
loss........................... $ 20,588 $ 20,779 $ 25,341 $ 23,387 $ 23,938 $ 19,013 $ 14,745
Interest expense -- debt
borrowings and capitalized
leases......................... 12,043 10,496 10,213 12,966 15,746 17,241 36,803
Interest portion of rental
expense........................ 2,751 3,109 3,970 5,892 6,411 6,932 8,338
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Earnings (loss)............. $ 35,382 $ 34,384 $ 39,524 $ 42,245 $ 46,095 $ 43,186 $ 59,886
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Fixed charges:
Interest...................... $ 12,043 $ 10,496 $ 10,213 $ 12,966 $ 15,746 $ 17,241 $ 36,803
Interest portion of rental
expense...................... 2,751 3,109 3,970 5,892 6,411 6,932 8,338
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Total fixed charges......... $ 14,794 $ 13,605 $ 14,183 $ 18,858 $ 22,157 $ 24,173 $ 45,141
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Ratio of earnings to fixed
charges................. 2.4 x 2.5 x 2.8 x 2.2 x 2.1 x 1.8 x 1.3 x
SIX MONTHS ENDED MARCH 31,
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PRO FORMA(3) PRO FORMA(4) HISTORICAL PRO FORMA(1) PRO FORMA(2) PRO FORMA(3)
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1995 1995 1995 1996 1995 1995 1995
Income (loss) before minority
interests, income taxes,
cumulative effect of accounting
change and extraordinary
loss........................... $ 12,239 $ 12,778 $ 11,832 ($ 11,219) $ 13,926 $ 9,136 $ 6,534
Interest expense -- debt
borrowings and capitalized
leases......................... 38,434 37,895 7,652 7,685 8,260 17,099 19,263
Interest portion of rental
expense........................ 8,338 8,338 3,181 3,195 3,389 4,102 4,102
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Earnings (loss)............. $ 59,011 $ 59,011 $ 22,665 ($339) $ 25,575 $ 30,337 $ 29,899
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Fixed charges:
Interest...................... $ 38,434 $ 37,895 $ 7,652 $ 7,685 $ 8,260 $ 17,099 $ 19,263
Interest portion of rental
expense...................... 8,338 8,338 3,181 3,195 3,389 4,102 4,102
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Total fixed charges......... $ 46,722 $ 46,233 $ 10,833 $ 10,880 $ 11,649 $ 21,201 $ 23,365
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Ratio of earnings to fixed
charges................. 1.3 x 1.3 x 2.1 x -- 2.2x 1.4 x 1.3 x
PRO FORMA(4) PRO FORMA(1) PRO FORMA(2) PRO FORMA(3) PRO FORMA(4)
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1995 1996 1996 1996 1996
Income (loss) before minority
interests, income taxes,
cumulative effect of accounting
change and extraordinary
loss........................... $ 6,534 $( 8,625) $( 9,375) $( 11,191) $( 9,346)
Interest expense -- debt
borrowings and capitalized
leases......................... 19,263 8,863 19,686 21,064 19,219
Interest portion of rental
expense........................ 4,102 3,452 4,162 4,162 4,162
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Earnings (loss)............. $ 29,899 $ 3,690 $ 14,473 $ 14,035 $ 14,035
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Fixed charges:
Interest...................... $ 19,263 $ 8,863 $ 19,686 $ 21,064 $ 19,219
Interest portion of rental
expense...................... 4,102 3,452 4,162 4,162 4,162
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Total fixed charges......... $ 23,365 $ 12,315 $ 23,848 $ 25,226 $ 23,381
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Ratio of earnings to fixed
charges................. 1.3 x -- -- -- --
(1) Adjusted to give pro forma effect to Paracelsus' acquisition of the Columbia
Hospitals.
(2) Adjusted to give pro forma effect to the Merger.
(3) Adjusted to give pro forma effect to the Merger and the Notes Offering.
(4) Adjusted to give pro forma effect to the Merger and the Offerings.