EX-12 3 d82518ex12.txt EX-12 COMPUTATION OF RATIO OF EARNINGS 1 EXHIBIT 12 ADVANCEPCS, INC. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (IN THOUSANDS EXCEPT RATIOS)
For The Fiscal Year Ended March 31, ------------------------------------------------------------------- 1996(3) 1997(3) 1998 1999 2000 Pro Forma 2000(2) -------- -------- -------- -------- -------- ----------------- FIXED CHARGES: Interest Expense $ 732 $ 445 $ 67 $ -- $ 3,839 $ 84,760 Other debt related costs $ -- $ -- $ -- $ -- $ 104 $ 2,617 Interest Element of rentals $ 201 $ 393 $ 598 $ 754 $ 1,071 $ 5,240 Total Fixed Charges $ 933 $ 838 $ 665 $ 754 $ 5,014 $ 92,617 EARNINGS AVAILABLE TO COVER FIXED CHARGES Net Income (loss) $ 1,013 $ 3,226 $ 8,088 $ 14,144 $ 20,876 $ (8,059) Add (deduct): Income tax expense $ -- $ 1,564 $ 4,957 $ 8,669 $ 12,794 $ 12,849 Fixed Charges excluding capitalized interest $ 933 $ 838 $ 665 $ 754 $ 5,014 $ 92,617 Total Earnings Available to Cover Fixed Charges $ 1,946 $ 5,628 $ 13,710 $ 23,567 $ 38,684 $ 99,805 RATIO OF EARNINGS TO FIXED CHARGES(1), (4) 2.09 6.71 20.61 31.26 7.71 1.05
For the Six Months Ended September 30, --------------------------- 2000 Pro Forma 2000(2) -------- ----------------- FIXED CHARGES: Interest Expense $ 2,084 $ 42,380 Other debt related costs $ 52 $ 1,309 Interest Element of rentals $ 637 $ 2,929 Total Fixed Charges $ 2,773 $ 46,618 EARNINGS AVAILABLE TO COVER FIXED CHARGES Net Income (loss) $ 12,286 $ (9,887) Add (deduct): Income tax expense $ 7,824 $ 5,374 Fixed Charges excluding capitalized interest $ 2,773 $ 46,618 Total Earnings Available to Cover Fixed Charges $ 22,883 $ 42,105 RATIO OF EARNINGS TO FIXED CHARGES(1), (4) 8.25 0.90(5) Pro Forma Earnings were inadequate to cover fixed charges by $ 4,513
(1) For purposes of computing the foregoing ratios: (a) earnings consist of income from continuing operations before income, taxes, and fixed charges, and (b) Fixed Charges consists of interest, amortization of debt issuance costs, and the estimated interest portion of lease expense, whether expensed or capitalized. (2) The pro forma ratio of earnings to fixed charges, gives effect to our acquisition of PCS. (3) This data has not been combined to reflect the merger with FFI, because obtaining this information was not feasible at this date. (4) The ratio of earnings to fixed charges in fiscal 1998 and the six months ended September 30, 2000, on a historical and pro forma basis, are net of $689,000, $1,200,000 and $1,200,000, respectively of merger expenses. Excluding the merger expenses, net of tax, from net income, the ratio would have been 21.29, 8.54, and .92, respectively. (5) Pro Forma Earnings were inadequate to cover fixed charges by $4,513,000 on a pro forma basis for the six months ended September 30, 2000.