WRIGHT MEDICAL TECHNOLOGY, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS
(in thousands, except ratios)
Three Months Ended
March 31, Years Ended December 31,
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1998 1997 1997 1996 1995
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(unaudited) (unaudited)
Earnings:
Loss before income taxes $ (4,011) $ (3,210) $ (22,572) $ (14,589) $ (4,873)
Add back: Interest expense 3,258 2,774 11,675 10,718 10,899
Amortization of debt issuance cost 347 346 1,387 1,361 1,036
Portion of rent expense representative of interest factor 123 119 519 459 451
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Earnings (loss) as adjusted $ (283) $ 29 $ (8,991) $ (2,051) $ 7,513
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Fixed charges:
Interest expense $ 3,258 $ 2,774 $ 11,675 $ 10,718 $ 10,899
Amortization of debt issuance cost 347 346 1,387 1,361 1,036
Portion of rent expense representative of interest factor 123 119 519 459 451
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$ 3,728 $ 3,239 $ 13,581 $ 12,538 $ 12,386
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Preferred dividends $ 3,292 $ 3,735 $ 12,121 $ 14,251 $ 16,863
Accretion of preferred stock 1,630 1,615 6,477 6,458 4,573
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$ 4,922 $ 5,350 $ 18,598 $ 20,709 $ 21,436
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Ratio of earnings to fixed charges (a) (a) (a) (a) (a)
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Ratio of earnings to fixed charges, preferred dividends and
accretion of preferred stock (b) (b) (b) (b) (b)
=========== =========== =========== =========== ===========
<FN>
(a) Earnings were inadequate to cover fixed charges by $4.0 million, $3.2 million, $22.6 million, $14.6 million and $4.9 million,
respectively, for the three months ended March 31, 1998 and March 31, 1997, and 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 $8.9 million, $8.6
million, $41.2 million, $35.3 million and $26.3 million, respectively, for the three months ended March 31, 1998 and March 31,
1997, and 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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