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) ($ 57,539) ($ 54,272) $ 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) (57,539) (54,085) 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) (119)
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) (57,539) (54,085) 63,423 27,245
Fixed Charges 81,538 48,175 65,684 64,842 66,643
--------- --------- --------- --------- ---------
Earnings before fixed charges 43,792 (9,364) 11,599 128,265 93,888
Fixed Charges 81,538 48,175 65,684 64,842 66,643
--------- --------- --------- --------- ---------
Ratio of earnings (deficiency) to
fixed charges (37,746) (57,539) (54,085) 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
-------------------------------------------
Nine Months ended Fiscal Year ended Nine Months ended
June 30, 1998 September 30, 1997 June 30, 1998
----------------- ------------------ -----------------
Income (loss) before income taxes,
minority interest and extraordinary items $33,781 $44,855 $30,645
Less:
Minority interest in earnings of
certain consolidated subsidiaries (221) 1,387 (855)
Equity in undistributed earnings of
certain unconsolidated subsidiaries -- --
---------------- ------------------ -----------------
(221) 1,387 (855)
Income (loss) before income taxes, minority interest and ---------------- ------------------ -----------------
extraordinary items as adjusted 34,002 43,468 31,500
---------------- ------------------ -----------------
---------------- ------------------ -----------------
Fixed Charges:
Magellan Health Services, Inc. and Consolidated
Subsidiaries:
Interest on indebtedness 58,678 108,460 84,551
Minority interest in fixed charges of
certain consolidated subsidiaries 3,967 14,018 11,836
Portion of rents representative of interest
expense 3,780 15,718 6,848
---------------- ------------------ -----------------
66,425 138,196 103,235
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 74,294 138,196 103,235
---------------- ------------------ -----------------
---------------- ------------------ -----------------
Ratio Computation:
Earnings 34,002 43,468 31,500
Fixed Charges 74,294 138,196 103,235
---------------- ------------------ -----------------
Earnings before fixed charges 108,296 181,664 134,735
Fixed Charges 74,294 138,196 103,235
---------------- ------------------ -----------------
Ratio of earnings (deficiency) to
fixed charges 1.46 1.31 1.31