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
September 30,

 

Nine months ended
September 30,

 

 

 

 

 

 

 

2006

 

2005

 

2006

 

2005

 

 

 

 

 

 

 

Income before Income Taxes(1)

 

$

84,582

 

$

93,508

 

$

215,478

 

$

284,808

 

Add fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense(2)

 

 

41,330

 

 

45,722

 

 

122,844

 

 

83,763

 

Amortization of debt expense

 

 

2,038

 

 

1,135

 

 

6,005

 

 

3,452

 

Interest portion of rent expense

 

 

6,041

 

 

5,091

 

 

17,240

 

 

13,594

 

 

 

 

 

 

 

Adjusted income(1) (2)

 

$

133,991

 

$

145,456

 

$

361,567

 

$

385,617

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense(2)

 

$

41,330

 

$

45,722

 

$

122,844

 

$

83,763

 

Amortization of debt expense

 

 

2,038

 

 

1,135

 

 

6,005

 

 

3,452

 

Interest portion of rent expense

 

 

6,041

 

 

5,091

 

 

17,240

 

 

13,594

 

 

 

 

 

 

 

Fixed charges(2)

 

$

49,409

 

$

51,948

 

$

146,089

 

$

100,809

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges(3)

 

 

2.7

x

 

2.8

x

 

2.5

x

 

3.8

x

 

 

 

 

 

 

 

 

(1)

Includes the following pretax charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended
September 30,

 

Nine months ended
September 30,

 

 

 

 

 

 

 

2006

 

2005

 

2006

 

2005

 

 

 

 

 

 

 

Restructuring and other related charges (a)

 

$

5,119

 

$

8,950

 

$

24,721

 

$

8,950

 

Litigation charges (b)

 

 

9,886

 

 

—

 

 

118,818

 

 

—

 

Heartland matters (b)

 

 

24,985

 

 

—

 

 

24,985

 

 

—

 

 

 

(a)

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

 

 

(b)

See the “Commitments and Contingencies” note of the Notes to the Consolidated Financial Statements.

 

 

(2)

Includes the following pretax charges:
 

Call premium and write-off of unamortized debt issuance costs (c)

 

$

—

 

$

7,465

 

$

—

 

$

7,465

 

 

 

 

 

(c)

 See the “Debt” note of the Notes to the Consolidated Financial Statements.

 

 

(3)

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.