EX-12.1 5 ex12-1_112601.txt COMP. OF RATIO OF EARN. TO FIXED CHARGES Exhibit 12.1 QUEST DIAGNOSTICS INCORPORATED COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED DIVIDENDS (DOLLARS IN THOUSANDS, EXCEPT RATIOS)
FOR THE NINE MONTHS YEAR ENDED DECEMBER 31, ENDED ----------------------------------------------------------------- SEPTEMBER 30, 2001 2000 1999 1998 1997 1996 --------- ----------------------------------------------------------------- Income (loss) before income taxes, equity earnings and minority share of income ..................... $239,233 $ 204,002 $ 20,473 $ 61,070 $ (16,468) $(676,202) Adjustments: Distributed income from less than 50% owned companies ........ 2,856 2,952 1,740 -- -- -- Fixed charges ....................... 84,351 145,721 89,336 59,242 61,860 94,098 -------- --------- --------- --------- ---------- ---------- Earnings before taxes and fixed charges, as adjusted ................ 326,440 $ 352,675 $111,549 $120,312 $ 45,392 $(582,104) ======== ========= ========= ========= ========== ========== Fixed charges: Interest expense .................... 64,179 $ 120,471 $ 69,842 $ 43,977 $ 46,040 $ 77,691 Portion of rent expense which represents interest factor ...... 20,172 25,250 19,494 15,265 15,820 16,407 -------- --------- --------- --------- ---------- ---------- Total fixed charges ................... $ 84,351 $ 145,721 $ 89,336 $ 59,242 $ 61,860 $ 94,098 ======== ========= ========= ========= ========== ========== Preferred dividends: Preferred dividend requirements ..... $ 88 $ 118 $ 118 $ 118 $ 129 $ -- Ratio of pre-tax income to net income .......................... 1.8 1.9 (11.3) (2.0) 0.9 1.1 -------- --------- --------- --------- ---------- ---------- Pre-tax preferred dividend requirement ..................... 160 225 (1,327) (235) 110 -- Total fixed charges ................... 84,351 145,721 89,336 59,242 61,860 94,098 -------- --------- --------- --------- ---------- ---------- Fixed charges and pre-tax preferred dividend requirement .. $ 84,511 $ 145,946 $ 88,009 $ 59,007 $ 61,970 $ 94,098 ======== ========= ========= ========= ========== ========== Ratio of earnings to fixed charges .... 3.9x 2.4x 1.2x 2.0x --(a) --(a) Ratio of earnings to combined fixed charges and preferred dividends ..... 3.9x 2.4x 1.3x 2.0x --(a) --(a)
(a) Earnings were insufficient to cover fixed charges and combined fixed charges and preferred stock dividend requirements by the following amounts (in thousands) in the years indicated:
YEAR ENDED DECEMBER 31, --------------------------------- 1997 1996 ------------ ----------- $ 16,578 $ 676,202