EX-12.1 6 s100586_ex12-1.htm EXHIBIT 12.1

 

EXHIBIT 12.1

 

RADNET, INC. AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(in thousands)

(unaudited)

  

   Nine Months Ended   Years Ended 
   September 30,   December 31, 
   2014   2013   2012   2011   2010   2009 
Earnings:                              
                               
Pre-tax net loss (1)  $(3,521)  $5,886   $4,377   $8,162   $(12,109)  $(1,732)
                               
Less:  Equity in earnings of unconsolidated joint ventures   (4,722)   (6,194)   (6,476)   (5,224)   (4,952)   (5,209)
                               
Plus:   Distributions from unconsolidated joint ventures   7,358   7,204    6,477    4,993    7,639    4,420 
                               
Fixed charges   43,524    54,891    61,352    59,028    61,751    49,965 
                               
Total adjusted earnings  $42,639   $61,787   $65,730   $66,959   $52,329   $47,444 
                               
Fixed charges:                              
                               
Interest expense (including debt issue costs amortized to interest expense)  $32,503  $45,791   $53,783   $52,798   $48,398   $50,016 
                               
Adjustments to exclude fair value of cash flow hedges reclassified from OCI to interest expense   -   -    (918)   (1,225)   (917)   (6,119)
                               
Write-off of debt issue costs   4,389   -    -    -    7,559    - 
                               
Portion of rent expense representative of the interest factor (2)   6,632   9,100    8,487    7,455    6,711    6,068 
                               
Total fixed charges  $43,524   $54,891   $61,352   $59,028   $61,751   $49,965 
                               
Ratio of earnings to fixed charges   -    1.13    1.07    1.13    -    - 
                               
Additional earnings required to have a one-to-one ratio of earnings to fixed charges  $885   $-   $-   $-   $9,422   $2,521 

 

(1) Includes net income attributable to noncontrolling interests applicable to fixed charges
(2)Represents 14% of operating lease costs, which approximates the portion that relates to the interest portion based on our estimated incremental borrowing rate