EX-12 10 ex12-1.htm EXHIBIT 12.1

 

Exhibit 12.1

 

Brookdale Senior Living Inc.

Ratio of Earnings to Combined Fixed Charges and Preferred Dividends

(in thousands)

 

 

 

 

 

 

 

 

Nine Months

Ended

September 30,

2006

 

Years Ended December 31

Earnings:

 

2005

 

2004

 

2003

 

2002

 

2001

 

Pre-tax income (loss) from continuing operations before adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees

(81,493)

 

(66,692)

 

(9,125)

 

(2,827)

 

19,799 

 

9,706 

 

Plus:

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges

123,812 

 

110,494 

 

100,284 

 

36,798 

 

20,006 

 

16,943 

 

 

Distributions from equity investees

1,355 

 

 

3,772 

 

1,915 

 

 

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

Capitalized interest

(171)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total earnings

43,503 

 

43,802 

 

94,931 

 

35,886 

 

39,805 

 

26,649 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense and amortization of debt discount/premium on all indebtedness (excluding losses recognized on early extinguishments of debt)

71,700 

 

47,324 

 

66,985 

 

26,560 

 

9,682 

 

8,280 

 

Capitalized interest expense

171 

 

 

 

 

 

 

Amount of pre-tax earnings required to cover any preferred stock dividend requirements

 

 

 

 

 

 

Interest factor portion of rental expense

51,941 

 

63,170 

 

33,299 

 

10,238 

 

10,324 

 

8,663 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total fixed charges

123,812 

 

110,494 

 

100,284 

 

36,798 

 

20,006 

 

16,943 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

0.4 

 

0.4 

 

0.9 

 

1.0 

 

2.0 

 

1.6 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings required to cover fixed charges

80,309 

 

66,692 

 

5,353 

 

912 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For purposes of this computation, earnings are defined as income (loss) before income taxes and adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees, plus fixed charges, amortization of capitalized interest and distributed income of equity investees, less capitalized interest. Fixed charges are defined as the sum of interest expensed and capitalized, amortized premiums, discounts and capitalized expenses related to indebtedness and an estimate of the interest within rent expense.