EXHIBIT 12.1
LABORATORY CORPORATION OF AMERICA HOLDINGS
STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS (LOSS)
TO COMBINED FIXED CHARGES AND PREFERRED DIVIDENDS
(DOLLARS IN MILLIONS)
PROFORMA
YEAR ENDED
YEAR ENDED DECEMBER 31, DECEMBER
--------------------------------- 31,
1992 1993 1994 1995 1996 1996
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Earnings (loss):
Earnings (loss before provision
for income taxes and
extraordinary item.............. $62.1 $191.1 $ 55.4 $ 3.1 $(188.3) $(176.0)
Add: Fixed Charges................
Interest expense (gross)......... 4.2 10.9 34.5 65.5 71.7 59.4
Interest factor in rents......... 9.0 10.0 11.5 20.1 23.5 23.5
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Earnings (loss) as adjusted...... $75.3 $212.0 $101.4 $88.7 $ (93.1) $ (93.1)
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Preferred dividend requirements.. $ -- $ -- $ -- $ -- $ -- $ 103.4
Ratio of earnings (loss) before
provision for income taxes to
net earnings (loss)............. -- -- -- -- -- 120%
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Preferred dividend factor on a
pre-tax basis................... -- -- -- -- -- 124.5
Fixed Charges
Interest expense (gross)........ 4.2 10.9 34.5 65.5 71.7 59.4
Interest factor in rents........ 9.0 10.0 11.5 20.1 23.5 23.5
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Combined fixed charges and
preferred dividends........... 13.2 20.9 46.0 85.6 95.2 207.4
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Ratio of earnings to combined
fixed charges and preferred
dividends........................ 5.71 10.16 2.20 1.04 NM NM
Amount by which earnings are
insufficient to cover combined
fixed charges and preferred
dividends........................ $(188.3) $(300.5)
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