EX-12.1.1 4 c78302a1exv12w1w1.txt STATEMENT RE COMPUTATION OF RATIOS Exhibit 12.1.1 Manor Care, Inc. Computation of Ratio of Earnings to Fixed Charges (In thousands, except ratios)
SIX MONTHS ENDED JUNE 30, 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 .... $ 82,115 $ 115,721 $ 212,684 $ 129,992 $ 61,669 $(102,396) $(24,565) Less: Equity in earnings of affiliates, excluding affiliate with guaranteed debt ......... (3,140) (1,873) (4,761) (4,543) (2,016) (2,276) (5,376) Add: Dividends received from equity affiliate .............. 3,088 2,198 3,026 11,574 6,000 -- -- Fixed charges deducted from earnings (see below) .......... 25,713 25,253 51,173 64,751 75,511 67,838 62,613 --------- --------- --------- --------- --------- --------- -------- Earnings available to cover fixed charges ................... $ 107,776 $ 141,299 $ 262,122 $ 201,774 $ 141,164 $ (36,834) $ 32,672 ========= ========= ========= ========= ========= ========= ======== FIXED CHARGES: Interest expense, including amounts in operating expense .... $ 20,783 $ 20,283 $ 41,395 $ 55,458 $ 66,460 $ 60,646 $ 55,340 Interest within rent expense ..... 4,930 4,970 9,778 9,293 9,051 7,192 7,273 --------- --------- --------- --------- --------- --------- -------- Fixed charges deducted from earnings ........................ 25,713 25,253 51,173 64,751 75,511 67,838 62,613 Interest expense on guaranteed debt of affiliate .... -- -- -- 2,272 4,309 922 -- Interest capitalized ............. 257 381 721 1,933 4,457 3,235 8,623 --------- --------- --------- --------- --------- --------- -------- Fixed charges .................... $ 25,970 $ 25,634 $ 51,894 $ 68,956 $ 84,277 $ 71,995 $ 71,236 ========= ========= ========= ========= ========= ========= ======== RATIO OF EARNINGS TO FIXED CHARGES (1) ..................... 4.2x 5.5x 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.