EX-12.1 2 radnet_10k-ex1201.htm COMPUTATION OF RATION OF EARNINGS TO FIXED CHARGES

EXHIBIT 12.1

 

RADNET, INC. AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(in thousands)

(unaudited)

 

    Years Ended 
    December 31, 
    2017   2016   2015   2014   2013   2012 
Earnings:                        
                          
Pre-tax net income (1)   $26,385   $12,436   $14,645   $3,961   $5,886   $4,377 
                                
Less: Equity in earnings of unconsolidated joint ventures    (13,554)   (9,767)   (8,927)   (6,970)   (6,194   (6,476)
                                
Plus: Distributions from unconsolidated joint ventures    8,690    2,926    7,731    7,358    7,204    6,477 
                                
Fixed charges    51,631    54,554    51,717    56,145    54,891    61,352 
                                
Total adjusted earnings   $73,152   $60,149   $65,166   $60,494   $61,787   $65,730 
                                
Fixed charges:                               
                                
Interest expense (including debt issue costs amortized to interest expense)   $40,623   $43,455   $41,684   $42,727   $45,791   $53,783 
                              
Adjustments to exclude fair value adjustments of cash flow hedges reclassified from OCI to interest expense                        (918)
                                
Write-off of debt issue costs        709        4,389         
                                
Portion of rent expense representative of the interest factor (2)    11,008    10,390    10,033    9,029    9,100    8,487 
                                
Total fixed charges   $51,631   $54,554   $51,717   $56,145   $54,891   $61,352 
                                
Ratio of earnings to fixed charges    1.42    1.10    1.26    1.08    1.13    1.07 
                                
Additional earnings required to have a one-to-one ratio of earnings to fixed charges   $   $   $   $   $   $ 

 

(1)   Excludes net income attributable to non-controlling interests
(2)   Represents 14% of operating lease costs, which approximates the portion that relates to the interest portion based on our estimated incremental borrowing rate