EX-12 2 ex12.htm EXHIBIT 12

EXHIBIT 12

Statement of Computation of Ratio of Earnings to Fixed Charges

Omnicare, Inc. and Subsidiary Companies

Unaudited

 

(In thousands, except ratio)

 

 

 

 

 

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

 

 

2005

 

2004

 

2005

 

2004

 

Income before Income Taxes

 

$

93,508  

 

$

89,430  

 

$

284,808  

 

$

285,313  

 

Add Fixed Charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense

 

 

45,722  

 

 

16,464  

 

 

83,763 

 

 

48,082  

 

Amortization of Debt Expense

 

 

1,135  

 

 

1,118  

 

 

3,452  

 

 

3,455  

 

Interest Portion of Rent Expense

 

 

5,091  

 

 

3,769  

 

 

13,594  

 

 

10,899  

 

Adjusted Income

 

$

145,456  

 

$

110,781  

 

$

385,617  

 

$

347,749  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense

 

$

45,722  

 

$

16,464  

 

$

83,763  

 

$

48,082  

 

Amortization of Debt Expense

 

 

1,135  

 

 

1,118  

 

 

3,452  

 

 

3,455  

 

Interest Portion of Rent Expense

 

 

5,091  

 

 

3,769  

 

 

13,594  

 

 

10,899  

 

Fixed Charges

 

$

51,948  

 

$

21,351 

 

$

100,809  

 

$

62,436  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of Earnings to Fixed Charges(1)

 

 

2.8  

x

 

5.2  

x

 

3.8  

x

 

5.6  

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.