EX-12 2 d283393dex12.htm STATEMENT RE: COMPUTATION OF RATIOS Statement re: Computation of Ratios

Exhibit 12

LifeCare Holdings, Inc.

Ratio of Earnings to Fixed Charges

($ in Thousands)

 

     Year Ended December 31,  
     2011     2010      2009      2008     2007  

Earnings adjusted for fixed charges:

            

Pre-tax income (loss)

   $ (34,104   $ 2,952       $ 3,748       $ (19,670   $ (60,705

Add

            

Fixed charges

     68,558        37,173         39,881         46,872        44,063   
  

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Pre-tax income (loss) before fixed charges and less preferred stock dividend requirements of consolidated subsidiaries

   $ 34,454      $ 40,125       $ 43,629       $ 27,202      $ (16,642
  

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Fixed charges:

            

Interest expense

   $ 57,925      $ 28,656       $ 31,456       $ 38,431      $ 36,914   

Interest portion of rent expense

     10,633        8,517         8,425         8,441        7,149   
  

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Total fixed charges

   $ 68,558      $ 37,173       $ 39,881       $ 46,872      $ 44,063   
  

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Ratio of earnings to fixed charges

     (A     1.1         1.1         (A     (A
  

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

 

(A) For the years ended December 31, 2011, 2008 and 2007, the ratio coverage ratio was less than 1:1. The Company would have had to generate additional earnings as summarized below for each of these periods to have achieved a coverage ratio of 1:1.

 

     Additional
Earnings
 

Year Ended December 31, 2011

   $ 34,104   

Year Ended December 31, 2008

   $ 19,670   

Year Ended December 31, 2007

   $ 60,705