EX-12.1 4 c07014exv12w1.htm STATEMENT REGARDING COMPUTATION OF RATIOS exv12w1
 

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,        
    2006     2005     2005     2004     2003     2002     2001  
 
                                                       
Earnings Available to Cover Fixed Charges:
                                                       
Income from continuing operations before income taxes
  $ 115,163     $ 122,341     $ 257,672     $ 254,879     $ 190,412     $ 212,684     $ 129,992  
Less:
                                                       
Equity in earnings of affiliates, excluding affiliate with guaranteed debt
    (3,587 )     (2,823 )     (5,492 )     (6,975 )     (7,236 )     (4,761 )     (4,543 )
 
                                                       
Add:
                                                       
Dividends received from equity affiliates
    1,951       2,489       3,231       1,956       4,750       3,026       11,574  
Losses of minority interests
    (483 )     (134 )     (724 )     (83 )     (35 )            
Fixed charges deducted from earnings (see below)
    18,066       25,409       69,219       62,684       53,000       51,173       64,751  
 
                                         
Earnings available to cover fixed charges
  $ 131,110     $ 147,282     $ 323,906     $ 312,461     $ 240,891     $ 262,122     $ 201,774  
 
                                         
Fixed Charges:
                                                       
Interest expense, including amounts in operating expense
  $ 15,238     $ 20,824     $ 61,204     $ 55,194     $ 44,600     $ 41,395     $ 55,458  
Interest within rent expense
    2,828       4,585       8,015       7,490       8,400       9,778       9,293  
 
                                         
Fixed charges deducted from earnings
    18,066       25,409       69,219       62,684       53,000       51,173       64,751  
Interest expense on guaranteed debt of affiliate
                                        2,272  
Interest capitalized
    526       603       990       1,002       671       721       1,933  
 
                                         
Fixed charges
  $ 18,592     $ 26,012     $ 70,209     $ 63,686     $ 53,671     $ 51,894     $ 68,956  
 
                                         
Ratio of Earnings to Fixed Charges
    7.1x       5.7x       4.6x       4.9x       4.5x       5.1x       2.9x