WRIGHT MEDICAL TECHNOLOGY, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS
(in thousands, except ratios)
Six Months Ended Year Ended Year Ended Year Ended
-----------------------------
June 30, 1998 June 30, 1997 Dec. 31, 1997 Dec. 31, 1996 Dec. 31, 1995
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(unaudited) (unaudited)
Earnings:
Loss before income taxes $ (8,165) $ (7,103) $ (22,572) $ (14,589) $ (4,873)
Add back: Interest expense 6,547 5,622 11,675 10,718 10,899
Amortization of debt issuance cost 694 693 1,387 1,361 1,036
Portion of rent expense representative
of interest factor 223 246 519 459 451
------------ ------------ ------------ ------------- ------------
Earnings (loss) as adjusted $ (701) $ (542) $ (8,991) $ (2,051) $ 7,513
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Fixed charges:
Interest expense $ 6,547 $ 5,622 $ 11,675 $ 10,718 $ 10,899
Amortization of debt issuance cost 694 693 1,387 1,361 1,036
Portion of rent expense representative
of interest factor 223 246 519 459 451
------------ ------------ ------------ ------------- ------------
$ 7,464 $ 6,561 $ 13,581 $ 12,538 $ 12,386
============ ============ ============ ============= ============
Preferred dividends
(grossed up to pretax equivalent basis): $ 7,633 $ 7,484 $ 12,121 $ 14,251 $ 16,863
Accretion of preferred stock
(grossed up to pretax equivalent basis): 3,229 3,229 6,477 6,458 4,573
------------ ------------ ------------ ------------- -----------
$ 10,862 $ 10,713 $ 18,598 $ 20,709 $ 21,436
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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 prefer(b) stock (b) (b) (b) (b) (b)
============ ============ ============= ============= ===========
<FN>
(a) Earnings were inadequate to cover fixed charges by $8.2 million, $7.1
million, $22.6 million, $14.6 million and $4.9 million, respectively,
for the six months ended June 30, 1998 and 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 $19.0 million, $17.8 million, $41.2
million, $35.3 million and $26.3 million, respectively, for the six months
ended June 30, 1998 and 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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