1
Exhibit 12.1
The following illustrates the computation of the ratio of earnings to fixed
charges for the years ended December 31,
1994 1995 1996 1997 1998
-------- -------- -------- -------- --------
Fixed Charges
Interest Expense $ 163 $ 252 $ 91 $ 981 $ 9,450
Amortization of deferred financing costs 48 3,645
Interest Component of operating leases 256 442 608 1,080 1,721
======== ======== ======== ======== ========
II. Total Fixed Charges $ 419 $ 694 $ 699 $ 2,109 $ 14,816
======== ======== ======== ======== ========
Earnings
Income before income taxes $ 3,506 $ 1,014 $ 8,432 $ (5,502) $(10,114)
Fixed charges 419 694 699 2,109 14,816
======== ======== ======== ======== ========
I. Total Earnings $ 3,925 $ 1,708 $ 9,131 $ (3,393) $ 4,702
======== ======== ======== ======== ========
Ratio of Earnings to Fixed Charges
(I divided by II) 9.4 2.5 13.1 (a) (b)
======== ======== ======== ======== ========
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 $5,502,000. This
shortfall was attributable to the expenses incurred in connection
with the Recapitalization, including compensation charges of
$17,924,000 for bonuses and phantom stock payments and transaction
fees and expenses of $1,967,000.00
(b) Earnings were inadequate to cover fixed charges by $10,114,000. This
shortfall was attributable to a full year of interest expense on
debt incurred with the Recapitalization, amortization and write-off
of deferred financing costs of $3,645,000 and a one-time reserve for
the termination of Interactive Voice Response leases of $850,000.