EX-12.1 3 g76508ex12-1.txt COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES EXHIBIT 12.1 RATIO OF EARNINGS TO FIXED CHARGES Kforce's ratio of earnings to fixed charges for each of the periods indicated is as follows:
------------------------------------------------------------------------------------------------------------------------------------ Three Months Fiscal Year Ended December 31, Ended March 31, ------------------------------------------------------------------------------------------------------------------------------------ (in thousands) ------------------------------------------------------------------------------------------------------------------------------------ 1997 1998 1999 2000 2001 2002 ---- ---- ---- ---- ---- ---- ------------------------------------------------------------------------------------------------------------------------------------ Income From Operations ............ 34,941 36,147 (37,393) 1,192 (14,177) (2,457) ------------------------------------------------------------------------------------------------------------------------------------ Add: Amortized Interest ....... -- -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Add: Interest Expense ......... -- 216 423 734 3,577 557 ------------------------------------------------------------------------------------------------------------------------------------ Add: Rent as Interest ......... -- -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Total Earnings .................... 34,941 36,363 (36,970) 1,926 (10,600) (1,900) ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ Fixed Charges ------------------------------------------------------------------------------------------------------------------------------------ Interest Expense .............. -- 216 423 734 3,577 557 ------------------------------------------------------------------------------------------------------------------------------------ Capitalized Interest .......... -- -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Debt Issuance Cost ............ -- -- -- 659 200 167 ------------------------------------------------------------------------------------------------------------------------------------ Rent as Interest .............. -- -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Total Fixed Charges ............... -- 216 423 1,393 3,777 723 ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ Ratio of Earnings to Fixed Charges ........ (a) 168.578 (b) 1.383 (b) (b) ------------------------------------------------------------------------------------------------------------------------------------
--------------------------------- (a) During 1997, Kforce did not have fixed charges. (b) Due to Kforce's losses in 1999, 2001 and the three months ended March 31, 2002, the ratio coverage was less than 1:1. Kforce must have generated additional earnings before income taxes of $37,393,028, $14,378,714 and $2,622,675 in 1999, 2001 and the three months ended March 31, 2002, respectively, to achieve a coverage ratio of 1:1.