EX-12 2 c50930_ex12.htm

EXHIBIT 12

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended
September 30,

 

Nine months ended
September 30,

 

 

 

 

 

 

 

2007

 

2006

 

2007

 

2006

 

 

 

 

 

 

 

Income before income taxes

 

$

69,264

 (1)

$

84,582

 (1)

$

220,177

 (1)

$

215,478

 (1)

Add fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

38,889

 

 

41,330

 

 

118,582

 

 

122,844

 

Amortization of debt expense

 

 

2,036

 

 

2,038

 

 

6,109

 

 

6,005

 

Interest portion of rent expense

 

 

5,905

 

 

6,041

 

 

18,159

 

 

17,240

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted income

 

$

116,094

 

$

133,991

 

$

363,027

 

$

361,567

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

$

38,889

 

$

41,330

 

$

118,582

 

$

122,844

 

Amortization of debt expense

 

 

2,036

 

 

2,038

 

 

6,109

 

 

6,005

 

Interest portion of rent expense

 

 

5,905

 

 

6,041

 

 

18,159

 

 

17,240

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges

 

$

46,830

 

$

49,409

 

$

142,850

 

$

146,089

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges(2)

 

 

2.5

 x

 

2.7

 x

 

2.5

 x

 

2.5

 x

 

 

 

 

 

 

 

 

(1)

Income before income taxes includes the following special pretax charges:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended
September 30,

 

Nine months ended
September 30,

 

 

 

 

 

 

 

2007

 

2006

 

2007

 

2006

 

 

 

 

 

 

 

Restructuring and other related charges (a)

 

$

4,957

 

$

5,119

 

$

20,381

 

$

24,721

 

Litigation charges (b)

 

 

9,192

 

 

9,886

 

 

25,109

 

 

118,818

 

Heartland matters (b)

 

 

3,648

 

 

24,985

 

 

14,351

 

 

24,985

 

(a) See the “Restructuring and Other Related Charges” note of the Notes to the Consolidated Financial Statements.

(b) See the “Commitments and Contingencies” note of the Notes to the Consolidated Financial Statements.

 

 

(2)

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.

E-2