EX-12.1 2 g91069exv12w1.txt EX-12.1 STATEMENT OF THE COMPUTATION OF THE RATIO OF EARNINGS TO FIXED CHARGES EXHIBIT 12.1 RENAL CARE GROUP, INC. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (DOLLARS IN THOUSANDS)
YEAR ENDED DECEMBER 31, SIX MONTHS -------------------------------------------------------------------- ENDED 1999 2000 2001 2002 2003 JUNE 30, 2004 -------- -------- -------- -------- -------- ------------- EARNINGS ADJUSTED FOR FIXED CHARGES: Income before income taxes $ 78,454 $ 86,165 $123,932 $149,129 $164,598 $ 95,788 ======== ======== ======== ======== ======== ======== Add: Interest expense and amortization of financing costs 6,311 5,068 4,092 2,611 1,621 509 Interest portion of rental expense 3,438 3,833 4,525 5,415 6,146 3,911 -------- -------- -------- -------- -------- -------- 9,749 8,901 8,617 8,026 7,767 4,420 -------- -------- -------- -------- -------- -------- EARNINGS $ 88,203 $ 95,066 $132,549 $157,155 $172,365 $100,208 ======== ======== ======== ======== ======== ======== FIXED CHARGES: Interest expense and amortization of financing costs $ 6,311 $ 5,068 $ 4,092 $ 2,611 $ 1,621 $ 509 Capitalized interest 300 275 145 -- -- Interest portion of rental expense 3,438 3,833 4,525 5,415 6,146 3,911 -------- -------- -------- -------- -------- -------- TOTAL FIXED CHARGES $ 10,049 $ 9,176 $ 8,762 $ 8,026 $ 7,767 $ 4,420 ======== ======== ======== ======== ======== ======== Ratio of earnings to fixed charges(A) 8.8 10.4 15.1 19.6 22.2 22.7 ======== ======== ======== ======== ======== ========
--------------- (A) The ratio of earnings to fixed charges is computed by dividing earnings by fixed charges. For this purpose, earnings consist of income before provision for income taxes plus fixed charges other than interest capitalized during the period. Fixed charges are defined as the total of interest expense, amortization of financing costs, and the estimated interest portion of rental expense on operating leases.