MAGELLAN HEALTH SERVICES, INC. AND CONSOLIDATED SUBSIDIARIES
COMBINED WITH UNCONSOLIDATED SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in thousands)
Fiscal year ended September 30,
1993 1994 1995 1996 1997
--------- --------- --------- --------- ---------
Income (loss) before income taxes,
minority interest and extraordinary items ($ 37,746) ($ 57,459) ($ 53,705) $ 64,238 $ 23,095
--------- --------- --------- --------- ---------
Less:
Minority interest in earnings of
certain consolidated subsidiaries 0 0 (187) 2,015 1,418
Equity in undistributed earnings of
certain unconsolidated subsidiaries 0 0 0 (1,200) (5,568)
--------- --------- --------- --------- ---------
0 0 (187) 815 (4,150)
--------- --------- --------- --------- ---------
Income (loss) before income taxes, minority interest and
extraordinary items as adjusted (37,746) (57,459) (53,518) 63,423 27,245
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
Fixed Charges:
Magellan Health Services, Inc. and Consolidated
Subsidiaries:
Interest on indebtedness 77,691 43,794 58,980 58,548 55,484
Minority interest in fixed charges of
certain consolidated subsidiaries 0 0 0 (128) (120)
Portion of rents representative of interest
expense 3,847 4,381 6,704 6,422 7,026
--------- --------- --------- --------- ---------
81,538 48,175 65,684 64,842 62,391
Unconsolidated Subsidiaries:
Interest on indebtedness 0 0 0 0 912
Portion of rents representative of
interest expense 0 0 0 0 3,340
Preferred dividend requirement 0 0 0 0 0
--------- --------- --------- --------- ---------
0 0 0 0 4,252
--------- --------- --------- --------- ---------
Total Fixed Charges 81,538 48,175 65,684 64,842 66,643
--------- --------- --------- --------- ---------
--------- --------- --------- --------- ---------
Ratio Computation:
Earnings (37,746) (57,459) (53,518) 63,423 27,245
Fixed Charges 81,538 48,175 65,684 64,842 66,643
--------- --------- --------- --------- ---------
Earnings before fixed charges 43,792 (9,284) 12,166 128,265 93,888
Fixed Charges 81,538 48,175 65,684 64,842 66,643
--------- --------- --------- --------- ---------
Ratio of earnings (deficiency) to
fixed charges (37,746) (57,459) (53,518) 1.98 1.41
MAGELLAN HEALTH SERVICES, INC. AND CONSOLIDATED SUBSIDIARIES
COMBINED WITH UNCONSOLIDATED SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in thousands)
Pro Forma Excluding CBHS Transactions
--------------------------------------
Three Months ended Fiscal Year ended Three Months ended
December 31, 1997 September 30, 1997 December 31, 1997
------------------ ------------------- -------------------
Income (loss) before income taxes,
minority interest and extraordinary items $ 17,507 $ 54,167 $ 9,835
Less:
Minority interest in earnings of
certain consolidated subsidiaries 342 1,387 342
Equity in undistributed earnings of
certain unconsolidated subsidiaries (634) 0 0
------------------ ------------------- -------------------
(292) 1,387 342
------------------ ------------------- -------------------
Income (loss) before income taxes, minority interest and
extraordinary items as adjusted 17,799 52,780 9,493
------------------ ------------------- -------------------
------------------ ------------------- -------------------
Fixed Charges:
Magellan Health Services, Inc. and Consolidated
Subsidiaries:
Interest on indebtedness 11,573 108,635 27,285
Minority interest in fixed charges of
certain consolidated subsidiaries (22) 624 (22)
Portion of rents representative of interest
expense 1,696 16,028 3,385
------------------ ------------------- -------------------
13,247 125,287 30,648
Unconsolidated Subsidiaries:
Interest on indebtedness 702 2,612 702
Portion of rents representative of
interest expense 2,760 10,784 2,760
Preferred dividend requirement 451 0 451
------------------ ------------------- -------------------
3,913 13,396 3,913
------------------ ------------------- -------------------
Total Fixed Charges 17,160 138,683 34,561
------------------ ------------------- -------------------
------------------ ------------------- -------------------
Ratio Computation:
Earnings 17,799 52,780 9,493
Fixed Charges 17,160 138,683 34,561
------------------ ------------------- -------------------
Earnings before fixed charges 34,959 191,463 44,054
Fixed Charges 17,160 138,683 34,561
------------------ ------------------- -------------------
Ratio of earnings (deficiency) to
fixed charges 2.04 1.38 1.27
Pro Forma Including CBHS Transactions
--------------------------------------
Fiscal Year ended Three Months ended
September 30, 1997 December 31, 1997
------------------- -----------------
Income (loss) before income taxes,
minority interest and extraordinary items $ 26,566 $ 8,941
Less:
Minority interest in earnings of
certain consolidated subsidiaries 0 0
Equity in undistributed earnings of
certain unconsolidated subsidiaries 0 0
------------------- -----------------
0 0
Income (loss) before income taxes, minority interest and
extraordinary items as adjusted 26,566 8,941
------------------- -----------------
------------------- -----------------
Fixed Charges:
Magellan Health Services, Inc. and Consolidated
Subsidiaries:
Interest on indebtedness 87,494 21,959
Minority interest in fixed charges of
certain consolidated subsidiaries 0 0
Portion of rents representative of interest
expense 15,718 3,338
------------------- -----------------
103,212 25,297
------------------- -----------------
------------------- -----------------
Unconsolidated Subsidiaries:
Interest on indebtedness 0 0
Portion of rents representative of
interest expense 0 0
Preferred dividend requirement 0 0
------------------- -----------------
0 0
------------------- -----------------
Total Fixed Charges 103,212 25,297
------------------- -----------------
------------------- -----------------
Ratio Computation:
Earnings 26,566 8,941
Fixed Charges 103,212 25,297
------------------- -----------------
Earnings before fixed charges 129,778 34,238
Fixed Charges 103,212 25,297
------------------- -----------------
Ratio of earnings (deficiency) to
fixed charges 1.26 1.35