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EXHIBIT 12
ADVANCEPCS
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 $ 97,407
RATIO OF EARNINGS TO FIXED CHARGES(1), (4) 2.09 6.71 20.61 31.26 7.71 1.05
For the Nine Months
Ended December 31,
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2000 Pro Forma 2000(2)
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FIXED CHARGES:
Interest Expense $ 24,198 $ 64,494
Other debt related costs $ 702 $ 1,959
Interest Element of rentals $ 2,137 $ 4,429
Total Fixed Charges $ 27,037 $ 70,882
EARNINGS AVAILABLE TO COVER FIXED CHARGES
Net Income (loss) $ 19,264 $ (2,909)
Add (deduct):
Income tax expense $ 16,409 $ 13,959
Fixed Charges excluding capitalized interest $ 27,037 $ 70,882
Total Earnings Available to Cover Fixed Charges $ 62,710 $ 81,932
RATIO OF EARNINGS TO FIXED CHARGES(1), (4) 2.32 1.16
(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.