EX-12 2 l38929exv12.htm EX-12 exv12
EXHIBIT 12
CHEMED CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(in thousands, except ratios)
                                         
    2005     2006     2007     2008     2009  
 
                                        
Pretax income from continuing operations
   $ 54,656     $ 90,284     $ 98,161     $ 115,404     $ 120,620  
 
                                        
Additions:
                                        
Fixed charges
     26,767       23,625       21,554       18,983       18,840  
Amortization of capitalized interest
     2       2       4       5       5  
 
                                        
Deductions:
                                        
Capitalized interest
     (380 )     (751 )     (951 )     (659 )     (258 )
 
                              
 
                                        
Adjusted income
   $ 81,045     $ 113,160     $ 118,768     $ 133,733     $ 139,207  
 
                              
 
                                        
Fixed Charges:
                                        
Interest expense
   $ 21,264     $ 17,468     $ 14,921     $ 12,123     $ 11,599  
Capitalized interest
     380       751       951       659       258  
Interest component of rental expense
     5,123       5,406       5,682       6,201       6,983  
 
                              
 
                                        
Fixed charges
   $ 26,767     $ 23,625     $ 21,554     $ 18,983     $ 18,840  
 
                              
 
                                        
Ratio of earnings to fixed charges (a)
     3.0 x     4.8 x     5.5 x     7.0 x     7.4 x
 
                              
 
                                        
Additional earnings needed to achieve 1:1 ratio coverage
     n.a.       n.a.       n.a.       n.a.       n.a.  
 
                              
 
(a)   For purposes of computing the ratio of earnings to fixed charges, pretax income from continuing operations has been added to fixed charges and adjusted for capitalized interest to derive adjusted income. Fixed charges consist of interest expense on debt (including the amortization of deferred financing costs), capitalized interest, prepayment penalties on the early extinguishment of debt and one-third (the proportion deemed representative of the interest component) of rental expense. Fixed charge amounts include interest from both continuing and discontinued operations.