1
Exhibit 12.1
WRIGHT MEDICAL TECHNOLOGY, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS
(in thousands, except ratios)
(unaudited)
Three Months Ended Year Ending
---------------------- ------------------------ June 30, 1993
March 31, March 31, Dec. 31, Dec. 31, through
1996 1995 1995 1994 Dec. 31, 1993
--------- --------- ----------- --------- ---------------
Earnings:
Income (loss) before income taxes $(1,464) $ 394 $(4,873) $(57,261) $(2,560)
Add back: Interest expense 2,643 2,586 10,899 9,311 4,721
Amortization of debt issuance cost 351 216 1,036 829 364
Portion of rent expense
representative of interest factor 124 109 451 349 97
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Earnings (loss) as adjusted $ 1,654 $3,305 $7,513 $(46,772) $2,622
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Fixed charges:
Interest expense $ 2,643 $2,586 $10,899 $9,311 $4,721
Amortization of debt issuance cost 351 216 1,036 829 364
Portion of rent expense representative of
interest factor 124 109 451 349 97
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$ 3,118 $2,911 $12,386 $10,489 $5,182
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Preferred dividends
(grossed up to pretax equivalent basis): $ 5,769 $2,396 $16,863 $3,997 $1,036
Accretion of preferred stock
(grossed up to pretax equivalent basis): 2,604 407 4,573 394 -
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$ 8,373 $2,803 $21,436 $4,391 $1,036
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Ratio of earnings to fixed charges (a) 1.1 (a) (a) (a)
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Ratio of earnings to fixed charges and
preferred dividends (b) (b) (b) (b) (b)
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(a) Earnings were inadequate to cover fixed charges by $1.5 million,
$4.9 million, $57.3 million, and $2.6 million, respectively, for the
three months ended March 31, 1996, for the years ended December 31,
1995, December 31, 1994, and for the period from June 30, 1993
through December 31, 1993.
(b) Earnings were inadequate to cover fixed charges and preferred dividends
by $9.8 million, $2.4 million, $26.3 million, $61.7 million and $3.6
million, respectively, for the three months ended March 31, 1996 and
March 31, 1995, for the years ended December 31, 1995, December 31,
1994, and for the period from June 30, 1993 through December 31, 1993.
Certain of the preferred dividend are, at the option of the Company, payable
in-kind not cash.