EX-12.1 5 y44651ex12-1.txt COMPUTATION OF RATIO OF EARNINGS 1 Exhibit 12.1 QUEST DIAGNOSTICS INCORPORATED COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED DIVIDENDS (DOLLARS IN THOUSANDS, EXCEPT RATIOS)
NINE MONTHS ENDED SEPTEMBER 30, YEAR ENDED DECEMBER 31, --------------------- ------------------------------------------------------------- 2000 1999 1999 1998 1997 1996 1995 --------------------- ------------------------------------------------------------- Income (loss) before income taxes, equity earnings and minority share of income ..................... $ 151,201 $ 37,831 $ 20,473 $ 61,070 $ (16,468) $(676,202) $ (57,568) Adjustments: Distributed income from less than 50% owned companies ......... 1,948 500 1,740 -- -- -- -- Fixed charges ....................... 111,883 51,353 89,336 59,242 61,860 94,098 100,203 --------- --------- --------- --------- --------- --------- --------- Earnings before taxes and fixed charges, as adjusted ................ $ 265,032 $ 89,684 $ 111,549 $ 120,312 $ 45,392 $(582,104) $ 42,635 ========= ========= ========= ========= ========= ========= ========= Fixed charges: Interest expense .................... $ 93,082 $ 38,725 $ 69,842 $ 43,977 $ 46,040 $ 77,691 $ 84,753 Portion of rent expense which represents interest factor ....... 18,801 12,628 19,494 15,265 15,820 16,407 15,450 --------- --------- --------- --------- --------- --------- --------- Total fixed charges ................... $ 111,883 $ 51,353 $ 89,336 $ 59,242 $ 61,860 $ 94,098 $ 100,203 ========= ========= ========= ========= ========= ========= ========= Preferred dividends: Preferred dividend requirements ..... $ 87 $ 87 $ 118 $ 118 $ 129 $ -- $ -- Ratio of pre-tax income to net income ........................... 1.9 2.5 (11.3) (2.0) 0.9 1.1 1.1 --------- --------- --------- --------- --------- --------- --------- Pre-tax preferred dividend requirement ...................... 167 217 (1,327) (235) 110 -- -- Total fixed charges ................... 111,883 51,353 89,336 59,242 61,860 94,098 100,203 --------- --------- --------- --------- --------- --------- --------- Fixed charges and pre-tax preferred dividend requirement ..... $ 112,050 $ 51,570 $ 88,009 $ 59,007 $ 61,970 $ 94,098 $ 100,203 ========= ========= ========= ========= ========= ========= ========= Ratio of earnings to fixed charges .... 2.4x 1.7x 1.2x 2.0x --(a) --(a) --(a) Ratio of earnings to combined fixed charges and preferred dividends .... 2.4x 1.7x 1.3x 2.0x --(a) --(a) --(a)
(a) Earnings were insufficient to cover combined fixed charges and preferred stock dividend requirements by the following amounts (in thousands) in the years indicated:
YEAR ENDED DECEMBER 31, --------------------------------------------------------- 1997 1996 1995 ------------ ------------ ------------ $ 16,578 $ 676,202 $ 57,568
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