WRIGHT MEDICAL TECHNOLOGY, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS
(in thousands, except ratios)
Years Ended December 31,
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1997 1996 1995
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Earnings:
Loss before income taxes $ (22,572) $ (14,589) $ (4,873)
Add back: Interest expense 11,675 10,718 10,899
Amortization of debt issuance cost 1,387 1,361 1,036
Portion of rent expense representative of interest factor 519 459 451
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Earnings (loss) as adjusted $ (8,991) $ (2,051) $ 7,513
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Fixed charges:
Interest expense $ 11,675 $ 10,718 $ 10,899
Amortization of debt issuance cost 1,387 1,361 1,036
Portion of rent expense representative of interest factor 519 459 451
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$ 13,581 $ 12,538 $ 12,386
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Preferred dividends $ 12,121 $ 14,251 $ 16,863
Accretion of preferred stock 6,477 6,458 4,573
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$ 18,598 $ 20,709 $ 21,436
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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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<FN>
(a) Earnings were inadequate to cover fixed charges by $22.6 million, $14.6
million, and $4.9 million, respectively, for the years ended December 31,
1997, December 31, 1996, and December 31, 1995.
(b) Earnings were inadequate to cover fixed charges, preferred dividends and
accretion of preferred stock by $41.2 million, $35.3 million, and $26.3
million respectively, for the years ended December 31, 1997, December 31,
1996, and December 31, 1995. Certain of the preferred dividends are, at
the option of the Company, payable in kind.
</FN>
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