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EXHIBIT 12.1
EMPLOYEE SOLUTIONS, INC.
AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Year ended December 31, Pro forma(a)
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1993 1994 1995 1996 1997 1997
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Income (loss) from continuing operations
before income taxes $208 $829 $6,681 $18,407 $(11,315) $(14,596)
Add
Portion of rents representative of the
interest factor 29 44 47 213 522 522
Interest on indebtedness 104 3 25 1,196 5,102 8,500
Amortization of debt expense and
premium 169 -- -- 53 601 484
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Income (loss) as adjusted $510 $876 $6,753 $19,869 $ (5,090) $ (5,090)
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Fixed charges
Interest on indebtedness $104 $ 3 $ 25 $ 1,196 $ 5,102 $ 8,500
Amortization of debt expense and
premium 169 -- -- 53 601 484
Portion of rents representative of
the interest factor 29 44 47 213 522 522
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Fixed charges $302 $ 47 $ 72 $ 1,462 $ 6,225 $ 9,506
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Ratio of earnings to fixed charges 1.7x 18.6x 93.8x 13.6x (b) (c)
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(a) Pro forma adjustments relate to the note offering being effective January 1,
1997. Adjustments include interest expense and amortization of debt expense
and the related effect on income (loss) from continuing operations before
income taxes.
(b) Earnings in 1997 were inadequate to cover fixed charges and resulted in a
coverage deficiency of approximately $11.3 million.
(c) Pro forma earnings in 1997 were inadequate to cover fro forma fixed
charges and resulted in acoverage deficiency of approximately
$14.6 million.