EX-12.1 5 ratioofearningstofixedchar.htm RATIO OF EARNINGS TO FIXED CHARGES RATIO OF EARNINGS TO FIXED CHARGES Q3


Exhibit 12.1
Centene Corporation
Computation of ratio of earnings to fixed charges
($ in thousands)
 
Nine Months Ended
 
Year Ended December 31,
 
9/30/2012
 
2011
 
2010
 
2009
 
2008
 
2007
Earnings:
 
 
 
 
 
 
 
 
 
 
 
Pre-tax earnings (loss) from continuing operations
$
(22,002
)
 
$
174,885

 
$
154,282

 
$
137,508

 
$
136,616

 
$
64,071

Addback:
 
 
 
 
 
 
 
 
 
 
 
Fixed charges
21,172

 
27,822

 
26,141

 
23,104

 
23,128

 
20,612

Subtract:
 
 
 
 
 
 
 
 
 
 
 
Non-controlling interest
8,732

 
2,855

 
(3,435
)
 
(2,574
)
 
—

 
—

Interest capitalized
—

 
—

 
(1,089
)
 
(116
)
 
—

 
—

Total earnings
$
7,902

 
$
205,562

 
$
175,899

 
$
157,922

 
$
159,744

 
$
84,683

 
 
 
 
 
 
 
 
 
 
 
 
Fixed Charges:
 
 
 
 
 
 
 
 
 
 
 
Interest expensed and capitalized
$
14,393

 
$
20,320

 
$
19,081

 
$
16,434

 
$
16,673

 
$
15,626

Interest component of rental payments (1)
6,779

 
7,502

 
7,060

 
6,670

 
6,455

 
4,986

Total fixed charges
$
21,172

 
$
27,822

 
$
26,141

 
$
23,104

 
$
23,128

 
$
20,612

 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
0.37

 
7.39

 
6.73

 
6.84

 
6.91

 
4.11

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Estimated at 33% of rental expense as a reasonable approximation of the interest factor.