EX-12 145 g27448exv12.htm EX-12 exv12
EXHIBIT 12
CAPELLA HEALTHCARE, INC.
COMPUTATIONS OF RATIOS OF EARNINGS TO FIXED CHARGES
(Unaudited)
(Dollars in Millions)
                                                         
    Year Ended December 31,     Three Months Ended March 31,  
    2006     2007     2008     2009     2010     2010     2011  
         
EARNINGS
                                                       
Income from continuing operations before income taxes
  $ 0.8     $ 2.5     $ (24.7 )   $ 9.2     $ (10.8 )   $ 3.4     $ 1.8  
Fixed charges, exclusive of capitalized interest (a)
    14.8       24.6       52.1       50.4       50.6       12.1       13.3  
         
TOTAL EARNINGS
  $ 15.6     $ 27.1     $ 27.4     $ 59.6     $ 39.8     $ 15.5     $ 15.1  
         
 
                                                       
FIXED CHARGES
                                                       
Interest charged to expense (a)
  $ 14.2     $ 23.9     $ 50.4     $ 48.5     $ 48.4     $ 11.6     $ 12.7  
Interest portion of rental expense
    0.6       0.7       1.7       1.9       2.2       0.5       0.6  
         
Fixed charges, exclusive of capitalized interest
    14.8       24.6       52.1       50.4       50.6       12.1       13.3  
Capitalized interest
                                         
         
TOTAL FIXED CHARGES
  $ 14.8     $ 24.6     $ 52.1     $ 50.4     $ 50.6     $ 12.1     $ 13.3  
         
 
                                                       
RATIO OF EARNINGS TO FIXED CHARGES
    1.1     1.1     n/a       1.2     n/a       1.3     1.1
         
Amount by which earnings are inadequate to cover fixed charges
    n/a       n/a     $ 24.7       n/a     $ 10.8       n/a       n/a  
 
(a)   calculated in fixed charges section below.
 
(b)   excludes interest income. Includes amortization of deferred financing costs and debt discount amortization.
 
(c)   estimated to be 15% of consolidated rental expense.