EXHIBIT 12.1
BTI TELECOM CORP.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN THOUSANDS)
YEAR ENDED DECEMBER 31,
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1994 1995 1996
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Income (loss) before taxes...................... $2,702 $ 371 $2,606
Less interest capitalized to inventories during
the period.................................... - - -
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Adjusted income (loss) before taxes............. 2,702 371 2,606
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Fixed Charges:
Other interest expense........................ 750 1,297 1,695
Amortization of financing costs............... 16 25 99
Rental expense(1)............................. 410 947 1,305
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Total fixed charges............................. 1,176 2,269 3,099
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Earnings........................................ 3,878 2,640 5,705
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Ratio (shortfall) of earnings to fixed charges.. 3.3x 1.2x 1.8x
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1997 1998
---- ----
Income (loss) before taxes...................... $(10,639) $(38,233)
Less interest capitalized to inventories during
the period.................................... - -
----- -----
Adjusted income (loss) before taxes............. (10,639) (38,233)
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Fixed Charges:
Other interest expense........................ 8,805 25,430
Amortization of financing costs............... 421 1,469
Rental expense(1)............................. 611 761
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Total fixed charges............................. 9,837 27,660
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Earnings........................................ (802) (10,573)
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Ratio (shortfall) of earnings to fixed charges.. - -
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(1) 15% of rental expense related to operating losses representing an
appropriate interest factor.