WRIGHT MEDICAL TECHNOLOGY, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS
(in thousands, except ratios)
(unaudited)
June 30,
Six Months Ended 1993
-------------------------- Year Ended Year Ended through
June 30, June 30, Dec. 31, Dec. 31, Dec. 31,
1996 1995 1995 1994 1993
------------ ------------ ------------- ---------- ---------
Earnings:
Loss before income taxes $ (2,973) $ (852) $ (4,873) $ (57,261) $ (2,560)
Add back: Interest expense 5,249 5,527 10,899 9,311 4,721
Amortization of debt issuance cost 702 394 1,036 829 364
Portion of rent expense representative
of interest factor 238 230 451 349 97
----------- --------- ---------- --------- ---------
Earnings (loss) as adjusted $ 3,216 $ 5,299 $ 7,513 $(46,772) $ 2,622
=========== ========= ========== ========== =========
Fixed charges:
Interest expense $ 5,249 $ 5,527 $ 10,899 $ 9,311 $ 4,721
Amortization of debt issuance cost 702 394 1,036 829 364
Portion of rent expense representative of interest factor 238 230 451 349 97
----------- --------- ---------- --------- ---------
$ 6,189 $ 6,151 $ 12,386 $ 10,489 $ 5,182
=========== ========= ========== ========= =========
Preferred dividends (grossed up to pretax equivalent basis): $ 11,518 $ 7,297 $ 16,863 $ 3,997 $ 1,036
Accretion of preferred stock (grossed up to pretax
equivalent basis): 5,208 1,313 4,573 394 -
----------- --------- ---------- --------- ---------
$ 16,726 $ 8,610 $ 21,436 $ 4,391 $ 1,036
=========== ========= ========== ========= =========
Ratio of earnings to fixed charges (a) (a) (a) (a) (a)
=========== ========= ========== ========= =========
Ratio of earnings to fixed charges and preferred dividends (b) (b) (b) (b) (b)
=========== ========= ========== ========= =========
<FN>
(a) Earnings were inadequate to cover fixed charges by $3.0 million, $0.9
million, $4.9 million, $57.3 million and $2.6 million, respectively, for
the six months ended June 30, 1996 and June 30, 1995, for the years ended
December 31, 1995, December 31, 1994, and for the period from June 30,
1993 through December 31, 1993.
(b) Earnings were inadequate to cover fixed charges and preferred dividends by
$19.7 million, $9.5 million, $26.3 million, $61.7 million and $3.6
million, respectively, for the six months ended June 30, 1996 and June 30,
1995, for the years ended December 31, 1995, December 31, 1994 and for the
period from June 30, 1993 through December 31, 1993. Certain of the
preferred dividends are, at the option of the Company, payable in kind.
</FN>
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