EX-12.1 3 l25570bexv12w1.htm EX-12.1 EX-12.1
 

Exhibit 12.1
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
                                                 
          Three Months  
          Ended  
    Year Ended December 31,     March 31,  
(in millions, except for ratios)   2002     2003     2004     2005     2006     2007  
Earnings:
                                               
Earnings (loss) before Income Taxes
  96,530     106,409     110,372     71,302     (309,524 )   (15,104 )
Fixed Charges
    13,761       10,662       15,591       28,805       35,565       13,887  
 
                                   
Total Earnings (loss)
  110,291     117,071     125,963     100,107     (273,959 )   (1,217 )
 
                                   
 
                                               
Fixed Charges:
                                               
Interest Expense
  12,722     9,429     14,201     27,246     34,084     10,343  
Amortization of debt offering costs
    377       423       434       600       390       3,230  
Interest portion of rent expense
    662       810       956       959       1,091       314  
 
                                   
Total Fixed Charges
  13,761     10,662     15,591     28,805     35,565     13,887  
 
                                     
 
                                               
Ratio of Earnings to Fixed Charges (see Note 1)
    8.0       11.0       8.1       3.5       N/A       N/A  
 
                                     
(1) The ratio of earnings to fixed charges is computed by dividing fixed charges of Invacare Corporation and our subsidiaries into earnings before income taxes. Fixed charges include interest expense, amortization of debt offering costs and the portion of rent expense which is deemed to be representative of the interest factor. For the year ended December 31, 2006 and the three months ended March 31, 2007, the ratio is inapplicable since the company incurred a loss in the year and quarter. Earnings were inadequate to cover fixed charges by $309.5 million for the year ended December 31, 2006 and $15.1 million for the three months ended March 31, 2007.