EX-12 2 c53434_ex-12.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    
          March 31,    
          2008       2007    
Income before income taxes   $ 49,799 (1 )   $ 69,559 (1 )
Add fixed charges:                    
  Interest expense     35,020         40,012    
  Amortization of debt expense     2,036         2,036    
  Interest portion of rent expense     6,465         6,032    
 
       Adjusted income   $ 93,320       $ 117,639    
 
Fixed charges:                    
  Interest expense   $ 35,020       $ 40,012    
  Amortization of debt expense     2,036         2,036    
  Interest portion of rent expense     6,465         6,032    
 
       Fixed charges   $ 43,521       $ 48,080    
 
 
Ratio of earnings to fixed charges(2)     2.1 x       2.4 x  
 
 
(1) Income before income taxes includes the following special pretax charges:                
 
          Three months ended    
          March 31,    
          2008       2007    
  Restructuring and other related charges (a)   $ 6,448       $ 9,174    
  Litigation and other related professional fees (b)     21,642         6,907    
  Heartland matters (b)     1,893         5,792    
                         

  (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.

 

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