EX-12.1 3 a2142730zex-12_1.htm EXHIBIT 12.1
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Exhibit 12.1

CONCENTRA OPERATING CORPORATION

COMPUTATION OF RATIOS

Ratio of Earnings to Fixed Charges

(Unaudited)

 
  Years Ended December 31,
  Six Months Ended
June 30,

 
  1999
  2000
  2001
  2002
  2003
  2003
  2004
 
  (dollars in thousands)

Earnings:                                          
Income (loss) before income taxes   $ (17,512 ) $ (2,360 ) $ (14,650 ) $ 1,026   $ 49,503   $ 25,629   $ 20,821
Less: Equity in earnings of unconsolidated subsidiaries net of related distributions     (474 )   (1,210 )   (3,015 )   (850 )   2,805     1,412     1,757
Fixed charges     46,796     80,160     80,175     79,266     71,397     36,833     36,086
   
 
 
 
 
 
 
  Total earnings(1)   $ 28,810   $ 76,590   $ 62,510   $ 79,442   $ 123,705   $ 63,874   $ 58,664
   
 
 
 
 
 
 
Fixed Charges:                                          
Interest expense   $ 35,779   $ 68,932   $ 67,250   $ 63,981   $ 56,632   $ 29,284   $ 28,241
Interest portion of rent expense     11,017     11,228     12,925     15,285     14,765     7,549     7,845
   
 
 
 
 
 
 
  Total fixed charges   $ 46,796   $ 80,160   $ 80,175   $ 79,266   $ 71,397   $ 36,833   $ 36,086
   
 
 
 
 
 
 
Ratio of earnings to fixed charges     0.6x     1.0x     0.8x     1.0x     1.7x     1.7x     1.6x

(1)
For purposes of determining the ratio of earnings to fixed charges, earnings include income from continuing operations before income taxes adjusted for fixed charges and equity in earnings of unconsolidated subsidiaries and related distributions. Fixed charges consist of interest on debt, including amortization of debt issuance costs, and 33% of rent expenses, which we estimate as the interest component of such rentals.



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