EX-12.1 5 c99030exv12w1.txt STATEMENT RE COMPUTATION OF RATIOS Exhibit 12.1 Manor Care, Inc. Computation of Ratio of Earnings to Fixed Charges (In thousands, except ratios)
SIX MONTHS ENDED JUNE 30, YEAR ENDED DECEMBER 31, ------------------------- ---------------------------------------------------------- 2005 2004 2004 2003 2002 2001 2000 --------- ------------- ---------- --------- --------- --------- --------- EARNINGS AVAILABLE TO COVER FIXED CHARGES: Income from continuing operations before income taxes and minority interests.............. $ 122,341 $ 129,960 $ 254,879 $ 190,412 $ 212,684 $ 129,992 $ 61,669 Less: Equity in earnings of affiliates, excluding affiliate with guaranteed debt.................... (2,823) (3,897) (6,975) (7,236) (4,761) (4,543) (2,016) Add: Dividends received from equity affiliates........................ 2,489 1,661 1,956 4,750 3,026 11,574 6,000 Losses of minority interests......... (134) (58) (83) (35) -- -- -- Fixed charges deducted from earnings (see below)............... 25,409 26,562 62,684 53,000 51,173 64,751 75,511 --------- ------------- ---------- --------- --------- --------- --------- Earnings available to cover fixed charges.............................. $ 147,282 $ 154,228 $ 312,461 $ 240,891 $ 262,122 $ 201,774 $ 141,164 ========= ============= ========== ========= ========= ========= ========= FIXED CHARGES: Interest expense, including amounts in operating expense................. $ 20,824 $ 22,537 $ 55,194 $ 44,600 $ 41,395 $ 55,458 $ 66,460 Interest within rent expense............ 4,585 4,025 7,490 8,400 9,778 9,293 9,051 --------- ------------- ---------- --------- --------- --------- --------- Fixed charges deducted from earnings............................. 25,409 26,562 62,684 53,000 51,173 64,751 75,511 Interest expense on guaranteed debt of affiliate......................... -- -- -- -- -- 2,272 4,309 Interest capitalized.................... 603 472 1,002 671 721 1,933 4,457 --------- ------------- ---------- --------- --------- --------- --------- Fixed charges........................... $ 26,012 $ 27,034 $ 63,686 $ 53,671 $ 51,894 $ 68,956 $ 84,277 ========= ============= ========== ========= ========= ========= ========= RATIO OF EARNINGS TO FIXED CHARGES.............................. 5.7x 5.7x 4.9x 4.5x 5.1x 2.9x 1.7x ========= ============= ========== ========= ========= ========= =========