EX-12 2 ex12.htm EXHIBIT 12

Exhibit 12

Statement of Computation of Ratio of Earnings to Fixed Charges
Omnicare, Inc. and Subsidiary Companies
(in thousands, except ratio)
Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Six months ended

 

 

 

June 30,

 

June 30,

 

 

 

 

 

 

 

2006

 

2005

 

2006

 

2005

 

 

 

 

 

 

 

Income before income taxes(1)

 

$

44,149

 

$

98,503

 

$

130,896

 

$

191,300

 

Add fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

41,082

 

 

19,295

 

 

81,514

 

 

38,041

 

Amortization of debt expense

 

 

1,987

 

 

1,144

 

 

3,967

 

 

2,317

 

Interest portion of rent expense

 

 

5,470

 

 

4,125

 

 

11,199

 

 

8,503

 

 

 

 

 

 

 

Adjusted income(1)

 

$

92,688

 

$

123,067

 

$

227,576

 

$

240,161

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

$

41,082

 

$

19,295

 

$

81,514

 

$

38,041

 

Amortization of debt expense

 

 

1,987

 

 

1,144

 

 

3,967

 

 

2,317

 

Interest portion of rent expense

 

 

5,470

 

 

4,125

 

 

11,199

 

 

8,503

 

 

 

 

 

 

 

Fixed charges

 

$

48,539

 

$

24,564

 

$

96,680

 

$

48,861

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges(2)

 

 

1.9

x

 

5.0

x

 

2.4

x

 

4.9

x

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)       Includes the following pretax charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Six months ended

 

 

 

June 30,

 

June 30,

 

 

 

 

 

 

 

2006

 

2005

 

2006

 

2005

 

 

 

 

 

 

 

            Restructuring and other related charges (a)

 

 

11,889

 

 

—

 

 

19,602

 

 

—

 

            Litigation charges (b)

 

 

74,832

 

 

—

 

 

108,932

 

 

—

 

 

 

 

 

(a)

See the “Restructuring and Other Related Charges” note of the Notes to the Consolidated Financial Statements.

 

 

(b)

See the “Subsequent Events” and “Commitments and Contingencies” notes of the Notes to the Consolidated Financial Statements.

 

 

 

(2)

 

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.