EX-12.1 2 c99030a1exv12w1.txt STATEMENT RE: COMPUTATION OF RATIOS Exhibit 12.1 Manor Care, Inc. Computation of Ratio of Earnings to Fixed Charges (In thousands, except ratios)
NINE MONTHS ENDED SEPTEMBER 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 .................. $ 202,878 $ 189,814 $ 254,879 $ 190,412 $ 212,684 $ 129,992 $ 61,669 Less: Equity in earnings of affiliates, excluding affiliate with guaranteed debt ................... (4,099) (5,662) (6,975) (7,236) (4,761) (4,543) (2,016) Add: Dividends received from equity affiliates ........................ 3,750 1,793 1,956 4,750 3,026 11,574 6,000 Losses of minority interests ........ (357) (83) (83) (35) -- -- -- Fixed charges deducted from earnings (see below) .............. 42,171 49,970 62,684 53,000 51,173 64,751 75,511 --------- --------- --------- --------- --------- --------- --------- Earnings available to cover fixed charges ............................. $ 244,343 $ 235,832 $ 312,461 $ 240,891 $ 262,122 $ 201,774 $ 141,164 ========= ========= ========= ========= ========= ========= ========= FIXED CHARGES: Interest expense, including amounts in operating expense ................ $ 35,906 $ 44,195 $ 55,194 $ 44,600 $ 41,395 $ 55,458 $ 66,460 Interest within rent expense .......... 6,265 5,775 7,490 8,400 9,778 9,293 9,051 --------- --------- --------- --------- --------- --------- --------- Fixed charges deducted from earnings ............................ 42,171 49,970 62,684 53,000 51,173 64,751 75,511 Interest expense on guaranteed debt of affiliate ........................ -- -- -- -- -- 2,272 4,309 Interest capitalized .................. 721 807 1,002 671 721 1,933 4,457 --------- --------- --------- --------- --------- --------- --------- Fixed charges ......................... $ 42,892 $ 50,777 $ 63,686 $ 53,671 $ 51,894 $ 68,956 $ 84,277 ========= ========= ========= ========= ========= ========= ========= RATIO OF EARNINGS TO FIXED CHARGES .... 5.7x 4.6x 4.9x 4.5x 5.1x 2.9x 1.7x ========= ========= ========= ========= ========= ========= =========