WRIGHT MEDICAL TECHNOLOGY, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS
(in thousands, except ratios)
(unaudited)
Three Months
Ended March 31, Year Ended December 31,
----------------------- ------------------------------------
1997 1996 1996 1995 1994
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Earnings:
Loss before income taxes $ (3,210) $(1,464) $(14,589) $ (4,873) $(57,261)
Add back: Interest expense 2,774 2,643 10,718 10,899 9,311
Amortization of debt issuance cost 346 351 1,361 1,036 829
Portion of rent expense representative
of interest factor 119 124 459 451 349
---------- --------- ---------- --------- ---------
Earnings (loss) as adjusted $ 29 $ 1,654 $ (2,051) $ 7,513 $(46,772)
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Fixed charges:
Interest expense $ 2,774 $ 2,643 $ 10,718 $ 10,899 $ 9,311
Amortization of debt issuance cost 346 351 1,361 1,036 829
Portion of rent expense representative of interest factor 119 124 459 451 349
---------- --------- ---------- --------- ---------
$ 3,239 $ 3,118 $ 12,538 $ 12,386 $ 10,489
========== ========= ========== ========= =========
Preferred dividends (grossed up to pretax equivalent basis): $ 3,735 $ 5,769 $ 14,251 $ 16,863 $ 3,997
Accretion of preferred stock (grossed up to pretax equivalent basis): 1,615 2,604 6,458 4,573 394
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$ 5,350 $ 8,373 $ 20,709 $ 21,436 4,391
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Ratio of earnings to fixed charges (a) (a) (a) (a) (a)
========== ========= ========== ========== =========
Ratio of earnings to fixed charges, preferred dividends and accretion
of preferred stock (b) (b) (b) (b) (b)
========== ========= ========== ========== ==========
(a) Earnings were inadequate to cover fixed charges by $3.2 million, $1.5
million, $14.6 million, $4.9 million and $57.3 million, respectively, for
the three months ended March 31, 1997 and March 31, 1996, for the years
ended December 31, 1996, December 31, 1995, and December 31, 1994.
(b) Earnings were inadequate to cover fixed charges, preferred dividends and
accretion of preferred stock by $8.6 million, $9.8 million, $35.3 million,
$26.3 million and $61.7 million, respectively, for the three months ended
March 31, 1997 and March 31, 1996, 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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