Exhibit 12.1
WRIGHT MEDICAL TECHNOLOGY, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS
(in thousands, except ratios)
(unaudited)
Years Ended December 31,
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1996 1995 1994
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Earnings:
Loss before income taxes $ (14,589) $ (4,873) $ (57,261)
Add back: Interest expense 10,718 10,899 9,311
Amortization of debt issuance cost 1,361 1,036 829
Portion of rent expense representative of interest factor 459 451 349
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Earnings (loss) as adjusted $ (2,051) $ 7,513 $ (46,772)
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Fixed charges:
Interest expense $ 10,718 $ 10,899 $ 9,311
Amortization of debt issuance cost 1,361 1,036 829
Portion of rent expense representative of interest factor 459 451 349
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$ 12,538 $ 12,386 $ 10,489
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Preferred dividends (grossed up to pretax equivalent basis): $ 14,251 $ 16,863 $ 3,997
Accretion of preferred stock (grossed up to pretax equivalent basis): 6,458 4,573 394
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$ 20,709 $ 21,436 $ 4,391
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Ratio of earnings to fixed charges (a) (a) (a)
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Ratio of earnings to fixed charges, preferred dividends and accretion of
preferred stock (b) (b) (b)
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(a) Earnings were inadequate to cover fixed charges by $14.6 million, $4.9
million, and $57.3 million, respectively, for the years ended December 31,
1996, December 1995, and December 31, 1994.
(b) Earnings were inadequate to cover fixed charges, preferred dividends and
accretion of preferred stock by $35.3 million, $26.3 million, and $61.7
million respectively, for the years ended December 31, 1996, December 31,
1995, and December 31, 1994. Certain of the preferred dividends are, at
the option of the Company, payable in kind.
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