EX-12 2 c57414_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
March 31,

 

 

 

 

 

 

2009

 

2008
as adjusted(3)

 

 

 

 

 

Income before income taxes

 

$

59,628

 (1)

$

43,733

 (1)

Add fixed charges:

 

 

 

 

 

 

 

Interest expense, excluding amortization of disount on convertible notes (Note 5)

 

 

29,468

 

 

35,020

 

Amortization of discount on convertible notes (Note 5)

 

 

6,797

 

 

6,300

 

Amortization of debt expense

 

 

1,824

 

 

1,802

 

Interest portion of rent expense

 

 

6,806

 

 

6,465

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted income

 

$

104,523

 

$

93,320

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges:

 

 

 

 

 

 

 

Interest expense, excluding amortization of discount on convertible notes (Note 5)

 

$

29,468

 

$

35,020

 

Amortization of discount on convertible notes (Note 5)

 

 

6,797

 

 

6,300

 

Amortization of debt expense

 

 

1,824

 

 

1,802

 

Interest portion of rent expense

 

 

6,806

 

 

6,465

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges

 

$

44,895

 

$

49,587

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges (2)

 

 

2.3

 x

 

1.9

 x

 

 

 

 

(1) Income before income taxes includes the following certain special items and accounting change impacts (pretax) including the following (as further discussed in the “MD&A” at Part I, Item 2 of this Filing):

 

 

 

 

 

 

 

 

 

 

Three months ended
March 31,

 

 

 

 

 

 

2009

 

2008

 

 

 

 

 

Restructuring and other related charges (a)

 

$

6,917

 

$

6,448

 

Litigation and other related professional fees (b)

 

 

41,665

 

 

21,642

 

Heartland matters (b)

 

 

1,993

 

 

1,893

 

 

 

 

(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.

(3) Effective January 1, 2009, Omnicare adopted the provisions of FSP APB 14-1. Financial statements for 2008 and prior periods have been restated for this change in accounting.