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)
Six Months ended
March 31, 1997
------------------
Income (loss) before income taxes, minority interest and
extraordinary items $ 16,937
Less:
Minority interest in earnings of certain consolidated subsidiaries 14
Equity in undistributed earnings of certain unconsolidated subsidiaries
----------
14
----------
Income (loss) before income taxes, minority interest and
extraordinary items as adjusted 16,923
----------
----------
Fixed Charges:
Magellan Health Services, Inc. and Consolidated Subsidiaries:
Interest on indebtedness 31,623
Minority interest in fixed charges of certain consolidated subsidiaries (33)
Portion of rents representative of interest expense 3,482
----------
35,072
Unconsolidated Subsidiaries:
Interest on indebtedness 1,397
Portion of rents representative of interest expense 5,568
Preferred dividend requirement 904
----------
7,869
----------
Total Fixed Charges 42,941
----------
----------
Ratio Computation:
Earnings 16,923
Fixed Charges 42,941
----------
Earnings before fixed charges 59,864
Fixed Charges 42,941
----------
Ratio of earnings (deficiency) to fixed charges 1.39
Pro Forma
----------------------------------------------
Fiscal Year ended Six Months ended
September 30, 1997 March 31, 1998
------------------ ----------------
Income (loss) before income taxes, minority interest and
extraordinary items $ 17,254 $ 11,354
Less:
Minority interest in earnings of certain consolidated subsidiaries -- --
Equity in undistributed earnings of certain unconsolidated subsidiaries -- --
---------- ----------
-- --
Income (loss) before income taxes, minority interest and
extraordinary items as adjusted 17,254 11,354
---------- ----------
---------- ----------
Fixed Charges:
Magellan Health Services, Inc. and Consolidated Subsidiaries:
Interest on indebtedness 87,648 44,579
Minority interest in fixed charges of certain consolidated subsidiaries -- --
Portion of rents representative of interest expense 15,718 6,672
---------- ----------
103,366 51,251
---------- ----------
---------- ----------
Unconsolidated Subsidiaries:
Interest on indebtedness -- --
Portion of rents representative of interest expense -- --
Preferred dividend requirement -- --
---------- ----------
-- --
---------- ----------
Total Fixed Charges -- --
---------- ----------
---------- ----------
Ratio Computation:
Earnings 17,254 11,354
Fixed Charges 103,366 51,251
---------- ----------
Earnings before fixed charges 120,620 62,605
Fixed Charges 103,366 51,251
---------- ----------
Ratio of earnings (deficiency) to fixed charges 1.17 1.22