EX-12 4 ex12.txt EXHIBIT 12 EXHIBIT 12 Computation of Ratio of Earnings to Fixed Charges Omnicare, Inc. and Subsidiary Companies (in thousands, except ratio)
For the years ended December 31, ---------------------------------------------------- 2004 2003 2002 2001 2000 -------- -------- -------- -------- -------- Income before Income Taxes $375,199 $310,449 $203,051 $119,785 $ 77,523 Add Fixed Charges: Interest Expense 65,821 73,345 52,811 52,724 52,974 Amortization of Debt Expense 4,600 4,200 4,000 3,600 2,100 Write-off of Debt Issuance Costs(1) -- 3,755 -- -- -- Interest Portion of Rent Expense 16,000 12,500 10,600 9,033 9,300 -------- -------- -------- -------- -------- Adjusted Income $461,620 $404,249 $270,462 $185,142 $141,897 ======== ======== ======== ======== ======== Fixed Charges: Interest Expense $ 65,821 $ 73,345 $ 52,811 $ 52,724 $ 52,974 Amortization of Debt Expense 4,600 4,200 4,000 3,600 2,100 Write-off of Debt Issuance Costs(1) -- 3,755 -- -- -- Interest Portion of Rent Expense 16,000 12,500 10,600 9,033 9,300 -------- -------- -------- -------- -------- Fixed Charges $ 86,421 $ 93,800 $ 67,411 $ 65,357 $ 64,374 ======== ======== ======== ======== ======== Ratio of Earnings to Fixed Charges(2) 5.3x 4.3x 4.0x 2.8x 2.2x ======== ======== ======== ======== ========
(1) The year ended December 31, 2003 includes the write-off of unamortized debt issuance costs relating to the Company's redemption of its 5.0% convertible subordinated debentures. See Note 7 of the Notes to Consolidated Financial Statements for further discussion. (2) The ratio of earnings to fixed charges has been computed by adding income before 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.