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 Nine Months Ended September 30, September 30, ------------------- ------------------- 2004 2003 2004 2003 -------- -------- -------- -------- Income before Income Taxes: $ 89,430 $ 78,227 $285,313 $213,570 Add Fixed Charges: Interest Expense 16,464 25,175 48,082 61,562 Amortization of Debt Expense 1,118 1,141 3,455 3,085 Interest Portion of Rent Expense 3,769 3,080 10,899 9,198 -------- -------- -------- -------- Adjusted Income $110,781 $107,623 $347,749 $287,415 ======== ======== ======== ======== Fixed Charges: Interest Expense $ 16,464 $ 25,175 $ 48,082 $ 61,562 Amortization of Debt Expense 1,118 1,141 3,455 3,085 Interest Portion of Rent Expense 3,769 3,080 10,899 9,198 -------- -------- -------- -------- Fixed Charges $ 21,351 $ 29,396 $ 62,436 $ 73,845 ======== ======== ======== ======== Ratio of Earnings to Fixed Charges (1) 5.2x 3.7x 5.6x 3.9x ======== ======== ======== ========
(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.