EX-12 2 c48353_ex12.htm

EXHIBIT 12

Statement of Computation of Ratio of Earnings to Fixed Charges
Omnicare, Inc. and Subsidiary Companies
(in thousands, except ratio)
Unaudited

   
Three months ended
   
March 31,
   
2007
   
2006
 
Income before income taxes   $ 69,559  
(1)
      $ 86,747  
(2)
Add fixed charges:        
         
       Interest expense     40,012  
    40,432    
       Amortization of debt expense     2,036  
    1,980    
       Interest portion of rent expense     6,032  
    5,730    
               Adjusted income   $ 117,639  
  $ 134,889    
 
Fixed charges:        
         
       Interest expense   $ 40,012  
  $ 40,432    
       Amortization of debt expense     2,036  
    1,980    
       Interest portion of rent expense     6,032  
    5,730    
               Fixed charges   $ 48,080  
  $ 48,142    
 
 
Ratio of earnings to fixed charges(3)     2.4  
x
    2.8  
x

(1)          

Income before income taxes includes a special charge of $9,174 for restructuring and other related charges. Please see the "Restructuring and Other Related Charges" note of the Notes to Consolidated Financial Statements for further discussion. Also included in income before income taxes is $6,907 and $5,792 for special items relating to litigation charges and Heartland matters, respectively. Please see the "Commitments and Contingencies" note of the Notes to Consolidated Financial Statements for further discussion.
 
(2)          

Income before income taxes includes a special charge of $7,713 for restructuring and other related charges. Please see the "Restructuring and Other Related Charges" note of the Notes to Consolidated Financial Statements for further discussion. Also included in income before income taxes is $34,100 for special charges relating to litigation charges. Please see the "Commitments and Contingencies" note of the Notes to Consolidated Financial Statements for further discussion.
 
(3)          

The ratio of earnings to fixed charges has been computed by adding income before income taxes and fixed charges to derive adjusted income, and dividing adjusted income by fixed charges. Fixed charges consist of interest expense on debt (including the amortization of debt expense) and one-third (the proportion deemed representative of the interest portion) of rent expense.