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EXHIBIT 12
ADVANCEPCS, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(IN THOUSANDS EXCEPT RATIOS)
For The Fiscal Year Ended March 31,
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1996(3) 1997(3) 1998 1999 2000 Pro Forma 2000(2)
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FIXED CHARGES:
Interest Expense $ 732 $ 445 $ 67 $ -- $ 3,839 $ 84,760
Other debt related costs $ -- $ -- $ -- $ -- $ 104 $ 2,617
Interest Element of rentals $ 201 $ 393 $ 598 $ 754 $ 1,071 $ 5,240
Total Fixed Charges $ 933 $ 838 $ 665 $ 754 $ 5,014 $ 92,617
EARNINGS AVAILABLE TO COVER FIXED CHARGES
Net Income (loss) $ 1,013 $ 3,226 $ 8,088 $ 14,144 $ 20,876 $ (8,059)
Add (deduct):
Income tax expense $ -- $ 1,564 $ 4,957 $ 8,669 $ 12,794 $ 12,849
Fixed Charges excluding capitalized interest $ 933 $ 838 $ 665 $ 754 $ 5,014 $ 92,617
Total Earnings Available to Cover Fixed Charges $ 1,946 $ 5,628 $ 13,710 $ 23,567 $ 38,684 $ 99,805
RATIO OF EARNINGS TO FIXED CHARGES(1), (4) 2.09 6.71 20.61 31.26 7.71 1.05
For the Six Months
Ended September 30,
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2000 Pro Forma 2000(2)
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FIXED CHARGES:
Interest Expense $ 2,084 $ 42,380
Other debt related costs $ 52 $ 1,309
Interest Element of rentals $ 637 $ 2,929
Total Fixed Charges $ 2,773 $ 46,618
EARNINGS AVAILABLE TO COVER FIXED CHARGES
Net Income (loss) $ 12,286 $ (9,887)
Add (deduct):
Income tax expense $ 7,824 $ 5,374
Fixed Charges excluding capitalized interest $ 2,773 $ 46,618
Total Earnings Available to Cover Fixed Charges $ 22,883 $ 42,105
RATIO OF EARNINGS TO FIXED CHARGES(1), (4) 8.25 0.90(5)
Pro Forma Earnings were inadequate to cover fixed charges by $ 4,513
(1) For purposes of computing the foregoing ratios: (a) earnings consist of
income from continuing operations before income, taxes, and fixed
charges, and (b) Fixed Charges consists of interest, amortization of
debt issuance costs, and the estimated interest portion of lease
expense, whether expensed or capitalized.
(2) The pro forma ratio of earnings to fixed charges, gives effect to our
acquisition of PCS.
(3) This data has not been combined to reflect the merger with FFI, because
obtaining this information was not feasible at this date.
(4) The ratio of earnings to fixed charges in fiscal 1998 and the six months
ended September 30, 2000, on a historical and pro forma basis, are net
of $689,000, $1,200,000 and $1,200,000, respectively of merger expenses.
Excluding the merger expenses, net of tax, from net income, the ratio
would have been 21.29, 8.54, and .92, respectively.
(5) Pro Forma Earnings were inadequate to cover fixed charges by $4,513,000
on a pro forma basis for the six months ended September 30, 2000.