EX-12.1 8 c78302exv12w1.txt STATEMENT RE COMPUTATION OF RATIOS Exhibit 12.1 Manor Care, Inc. Computation of Ratio of Earnings to Fixed Charges (In thousands, except ratios)
3 MONTHS ENDED MARCH 31, YEARS ENDED DECEMBER 31, ------------------------ ------------------------ 2003 2002 2002 2001 2000 1999 1998 ---- ---- ---- ---- ---- ---- ---- EARNINGS AVAILABLE TO COVER FIXED CHARGES: Income (loss) from continuing operations before income taxes and minority interests................ $50,206 $54,418 $212,684 $129,992 $ 61,669 $(102,396) $(24,565) Less: Equity in earnings of affiliates, excluding affiliate with guaranteed debt.................. (1,541) (736) (4,761) (4,543) (2,016) (2,276) (5,376) Add: Dividends received from equity affiliate........................ 1,971 2,182 3,026 11,574 6,000 -- -- Fixed charges deducted from earnings (see below)............. 11,968 12,454 51,173 64,751 75,511 67,838 62,613 ------- ------- -------- -------- -------- --------- -------- Earnings available to cover fixed charges........................... $62,604 $68,318 $262,122 $201,774 $141,164 $ (36,834) $ 32,672 ======= ======= ======== ======== ======== ========= ======== FIXED CHARGES: Interest expense, including amounts in operating expense.............. $ 9,463 $ 9,949 $ 41,395 $ 55,458 $ 66,460 $ 60,646 $ 55,340 Interest within rent expense........ 2,505 2,505 9,778 9,293 9,051 7,192 7,273 ------- ------- -------- -------- -------- --------- -------- Fixed charges deducted from earnings.......................... 11,968 12,454 51,173 64,751 75,511 67,838 62,613 Interest expense on guaranteed debt of affiliate...................... -- -- -- 2,272 4,309 922 -- Interest capitalized................ 182 287 721 1,933 4,457 3,235 8,623 ------- ------- -------- -------- -------- --------- -------- Fixed charges....................... $12,150 $12,741 $ 51,894 $ 68,956 $ 84,277 $ 71,995 $ 71,236 ======= ======= ======== ======== ======== ========= ======== RATIO OF EARNINGS TO FIXED CHARGES (1)....................... 5.2x 5.4x 5.1x 2.9x 1.7x -- -- ======= ======= ======== ======== ========
(1) We do not show a ratio for 1998 and 1999 because earnings were insufficient to cover fixed charges by $38.6 million in 1998 and $108.8 million in 1999.