EX-12.1 4 a2195365zex-12_1.htm EX-12.1

Exhibit 12.1

FIVE STAR QUALITY CARE, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(in thousands except ratios)

 
   Nine months ended
September 30, 		  Year ended December 31,  
 
   2009   2008   2008   2007   2006   2005   2004  

Consolidated earnings (loss)

   $ 136,944   $ 101,363   $ 129,664   $ 135,030   $ (19,155 ) $ (5,678 ) $ 67,809  

Consolidated fixed charges

     96,301     93,266     127,581     107,106     90,612     74,400     62,657  

Ratio of consolidated earnings to fixed charges

    
1.4
x		  
1.1
x		  
1.0
x		  
1.3
x		  
—
(1)		  
—
(1)		  
1.1
x

Deficiency

     —     —     —     —     109,767     80,078     —  

Calculation of consolidated earnings (loss):

                                            
   

Consolidated income (loss) from continuing operations before income tax

   $ 40,643   $ 8,097   $ 2,083   $ 27,924   $ (109,767 ) $ (80,078 ) $ 5,152  
   

Consolidated fixed charges

     96,301     93,266     127,581     107,106     90,612     74,400     62,657  
                               
 

Consolidated earnings (loss)

  
$
136,944		  
$
101,363		  
$
129,664		  
$
135,030		  
$
(19,155
)
$
(5,678
)
$
67,809		  

Calculation of fixed charges:

                                            
   

Interest expense

     3,287     4,681     6,070     6,335     3,791     3,043     881  
   

Estimated interest component of rent expense

     92,911     88,376     121,244     100,304     86,248     70,769     61,487  
   

Amortization of debt discounts / premiums

     —     34     34     49     191     193     —  
   

Amortization of capitalized deferred finance costs

     103     175     233     418     382     395     289  
                               
 

Fixed charges

   $ 96,301   $ 93,266   $ 127,581   $ 107,106   $ 90,612   $ 74,400   $ 62,657  
                               
(1)
Earnings were insufficient to cover fixed charges by approximately $109.8 million and $80.1 million for the years ended December 31, 2006 and 2005, respectively; accordingly, no ratio is presented for such periods.