EX-12 2 ex12.htm EXHIBIT 12

EXHIBIT 12

Computation of Ratio of Earnings to Fixed Charges

Omnicare, Inc. and Subsidiary Companies

Unaudited

(In thousands, except ratio)

 

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

 

 

2005

 

2004

 

2005

 

2004

 

Income before Income Taxes

 

$

98,503

 

 

$

95,955

 

 

$

191,300

 

 

$

195,883

 

 

Add Fixed Charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense

 

 

19,295

 

 

 

16,057

 

 

 

38,041

 

 

 

31,618

 

 

Amortization of Debt Expense

 

 

1,144

 

 

 

1,186

 

 

 

2,317

 

 

 

2,337

 

 

Interest Portion of Rent Expense

 

 

4,125

 

 

 

3,675

 

 

 

8,503

 

 

 

7,130

 

 

Adjusted Income

 

$

123,067

 

 

$

116,873

 

 

$

240,161

 

 

$

236,968

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense

 

$

19,295

 

 

$

16,057

 

 

$

38,041

 

 

$

31,618

 

 

Amortization of Debt Expense

 

 

1,144

 

 

 

1,186

 

 

 

2,317

 

 

 

2,337

 

 

Interest Portion of Rent Expense

 

 

4,125

 

 

 

3,675

 

 

 

8,503

 

 

 

7,130

 

 

Fixed Charges

 

$

24,564

 

 

$

20,918

 

 

$

48,861

 

 

$

41,085

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of Earnings to Fixed Charges(1)

 

 

5.0

 

x

 

5.6

 

x

 

4.9

 

x

 

5.8

 

x

(1)

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.