EX-12.1 12 dex121.htm COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

Exhibit 12.1

Computation of Ratios of Earnings to Fixed Charges

(in thousands, except ratios)

 

     Year ended December 31,   

Pro Forma
Year ended
December 31,

2005(1)(2)

     2001    2002    2003    2004    2005   

Income before income taxes

    $ 52,797    $ 78,281    $ 87,799    $ 97,610    $ 105,574    $ 109,148

Add:

                  

Interest expense

      18,090      14,854      14,632      13,512      14,420      9,775

Reductions of previously capitalized interest

      —        —        —        —        107      107

Discount on accounts receivable securitization

      4,330      1,782      757      261      —        —  

Distributions on mandatorily redeemable preferred securitization

      7,095      7,034      2,898      —        —        —  

Portion of rents representative of the interest factor

      10,351      10,961      11,320      11,738      12,587      12,587
                                         

Income as adjusted

    $ 92,663    $ 112,912    $ 117,406    $ 123,121    $ 132,688    $ 131,617
                                         

Fixed charges:

                  

Interest expense

      18,090      14,854      14,632      13,512      14,420      9,775

Capitalized interest

      —        —        236      366      1,296      1,296

Discount on accounts receivable securitization

      4,330      1,782      757      261      —        —  

Distributions on mandatorily redeemable preferred securities

      7,095      7,034      2,898      —        —        —  

Portion of rents representative of

                  

the interest factor

      10,351      10,961      11,320      11,738      12,587      12,587
                                         

Fixed charges

    $ 39,866    $ 34,631    $ 29,843    $ 25,877    $ 28,303    $ 23,658
                                         

Ratio of earnings to fixed charges

      2.3x      3.3x      3.9x      4.8x      4.7x      5.6x
                                         
(1) Gives effect to the completion of the offering by Owens & Minor, Inc. (the “Company”) of up to $200.0 million of its Senior Notes due 2016 (the “Notes”) and the application of the net proceeds therefrom, together with cash on hand, as described in “Use of Proceeds” in the prospectus included in the Registration Statement (the “Prospectus”). Also assumes that all of the Company’s outstanding $200.0 million aggregate principal amount of 8½% Senior Subordinated Notes due 2011 will be validly tendered and accepted for purchase in the tender offer described in the Prospectus.
(2) Assumes an interest rate of 6 3/8% for the Notes. A change of 0.125% in the interest rate applicable to the Notes would change the Company’s annualized interest expense by approximately $0.3 million.