1
Exhibit 12.1
The following illustrates the computation of the ratio of earnings to fixed
charges:
Three Months Ended
March 31, Year Ended December 31,
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Pro Forma Pro Forma
1998 1998 1997 1997 1997 1996 1995 1994 1993
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(Dollars in Thousands)
Fixed Charges --
Interest expense 2,336 2,385 -- $ 9,305 $ 981 $ 91 $ 252 $ 163 $ 243
Amortization of
deferred financing
costs 94 3,329 -- 375 48
Interest component
of operating leases 338 338 219 1,080 1,080 608 442 256 228
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II. Total Fixed
Charges 2,766 6,062 219 $10,760 $ 2,109 $ 699 $ 694 $ 419 $ 471
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Earnings --
Income before income
taxes (370) (3,654) 6,069 $ 6,606 $(5,502) $ 8,432 $ 1,014 $ 3,506 $ 279
Fixed charges 338 338 219 10,780 2,109 699 694 419 471
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I. Total Earnings (32) (3.316) 6,288 $17,386 ($3,393) $ 9,131 $ 1,708 $ 3,925 $ 750
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Ratio of Earnings to
Fixed Charges
(I divided by II) (b) (c) 28.7 1.6 (a) 13.1 2.5 9.4 1.6
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The ratio of earnings to fixed charges has been calculated by dividing income
before income taxes and fixed charges by fixed charges. Fixed charges for this
purpose include cash interest expense, amortization of deferred financing costs
and one third of operating lease payments (the portion deemed to be
representative of the interest factor).
(a) Earnings were inadequate to cover fixed charges by $5,502. This
shortfall was attributable to the expenses incurred in connection with the
Recapitalization, including compensation charges of $17,924 for
bonuses and phantom stock payments and transaction fees and expenses of
$1,967.
(b) Earnings were inadequate to cover fixed charges by $370.
(c) Earnings were inadequate to cover fixed charges by $3,654. This shortfall
was largely attributable to the write-off of deferred financing costs
incurred relating to the Bridge Facility.