EX-12.1 7 a15-24091_1ex12d1.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,

 

 

 

2015

 

2014

 

2013

 

2012

 

2011

 

2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings

 

$

54,472

 

$

105,541

 

$

133,878

 

$

138,136

 

$

193,239

 

$

191,077

 

Fixed Charges

 

88,641

 

128,593

 

128,847

 

120,764

 

176,212

 

166,062

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

(1)

(1)

1.0x

 

1.1x

 

1.1x

 

1.2x

 

Deficiency

 

$

(34,169

)

$

(23,052

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Calculation of earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations before income tax expense

 

$

(34,099

)

$

(22,965

)

$

5,365

 

$

17,688

 

$

17,166

 

$

25,014

 

Equity in (earnings) losses of AIC

 

(70

)

(87

)

(334

)

(316

)

(139

)

1

 

Fixed charges

 

88,641

 

128,593

 

128,847

 

120,764

 

176,212

 

166,062

 

Adjusted Earnings

 

$

54,472

 

$

105,541

 

$

133,878

 

$

138,136

 

$

193,239

 

$

191,077

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Calculation of Fixed Charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense (2)

 

3,597

 

5,131

 

5,892

 

6,703

 

4,377

 

3,045

 

Estimated interest component of rent expense

 

85,044

 

123,462

 

122,955

 

114,061

 

171,835

 

163,017

 

Fixed Charges

 

$

88,641

 

$

128,593

 

$

128,847

 

$

120,764

 

$

176,212

 

$

166,062

 

 


(1) Earnings were insufficient to cover fixed charges by approximately $34.2 million and $23.1 million for the nine months ended September 30, 2015 and the year ended December 31, 2014, respectively; accordingly, no ratio is presented for such periods.

 

(2) Interest expense represents interest charges from continuing and discontinued operations and includes net amortization of debt discounts, premiums and deferred financing fees.