EX-12 2 a50173390ex12.htm EXHIBIT 12 Unassociated Document 













EXHIBIT 12








 












CHEMED CORPORATION


 




COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES


 




(in thousands, except ratios)


 


  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


  
 


2007


 
 


2008


 
 


2009


 
 


2010


 
 


2011


 


  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




Pretax income from continuing operations


 
$
98,161
 
 
$
115,404
 
 
$
120,620
 
 
$
133,831
 
 
$
140,556
 


  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




Additions:


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




     Fixed charges


 
 
21,554
 
 
 
18,983
 
 
 
18,840
 
 
 
19,139
 
 
 
21,231
 




     Amortization of capitalized interest


 
 
4
 
 
 
5
 
 
 
5
 
 
 
331
 
 
 
438
 


  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




Deductions:


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




     Capitalized interest


 
 
(951
)
 
 
(659
)
 
 
(258
)
 
 
-
 
 
 
-
 




 


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




          Adjusted income


 
$
118,768
 
 
$
133,733
 
 
$
139,207
 
 
$
153,301
 
 
$
162,225
 


  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




Fixed Charges:


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




     Interest expense


 
$
14,921
 
 
$
12,123
 
 
$
11,599
 
 
$
11,959
 
 
$
13,888
 




     Capitalized interest


 
 
951
 
 
 
659
 
 
 
258
 
 
 
-
 
 
 
-
 




     Interest component of rental expense


 
 
5,682
 
 
 
6,201
 
 
 
6,983
 
 
 
7,180
 
 
 
7,343
 




 


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




          Fixed charges


 
$
21,554
 
 
$
18,983
 
 
$
18,840
 
 
$
19,139
 
 
$
21,231
 


  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 




Ratio of earnings to fixed charges (a)


 
 
5.5 
x
 
 
7.0 
x
 
 
7.4 
x
 
 
8.0 
x
 
 
7.6 
x








 























(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.