EX-12 2 ex12.txt EXHIBIT 12 EXHIBIT 12 COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES OMNICARE, INC. AND SUBSIDIARY COMPANIES UNAUDITED (in thousands)
Three Months Ended Six Months Ended June 30, June 30, ------------------ ------------------- 2004 2003 2004 2003 -------- ------- -------- -------- Income before Income Taxes: $ 95,955 $70,178 $195,883 $135,343 Add Fixed Charges: Interest Expense 16,057 20,915 31,618 36,387 Amortization of Debt Expense 1,186 960 2,337 1,944 Interest Portion of Rent Expense 3,675 2,985 7,130 6,118 -------- ------- -------- -------- Adjusted Income $116,873 $95,038 $236,968 $179,792 ======== ======= ======== ======== Fixed Charges: Interest Expense $ 16,057 $20,915 $ 31,618 $ 36,387 Amortization of Debt Expense 1,186 960 2,337 1,944 Interest Portion of Rent Expense 3,675 2,985 7,130 6,118 -------- ------- -------- -------- Fixed Charges $ 20,918 $24,860 $ 41,085 $ 44,449 ======== ======= ======== ======== Ratio of Earnings to Fixed Charges (1) 5.6 x 3.8 x 5.8 x 4.0 x ======== ======= ======== ========
(1) 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.