EX-12.1 3 dex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

EXHIBIT 12.1

GENTIVA HEALTH SERVICES, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (A)

($ in thousands)

 

     Fiscal Year Ended     Six  Months
Ended
July 4,
2010		      Six
Months
Ended
July 4,
2010 (B)		  
     January 1,
2006		      December 31,
2006		      December 30,
2007		      December 28,
2008		      January 3,
2010		     January 3,
2010 (B)		       
     (52 weeks)      (52 weeks)      (52 weeks)      (52 weeks)      (53 weeks)     (53 weeks)            (Proforma)  
                                       (Proforma)               

Earnings:

                      

Income from continuing operations before income taxes and equity in net earnings of affiliate

      31,536         24,947         53,588         179,776         107,888        81,522        51,523         48,884   

Add: fixed charges

      6,016         31,652         34,690         28,002         17,879        118,826        7,959         58,877   

Less: Capitalized interest

      —           —           —           —           (700 )      (700 )      —           —     

Less: Income attributable to noncontrolling interests (C)

      —           —           —           —           —          (1,052 )      —           (813 ) 
                                                                     

Total earnings

      37,552         56,599         88,278         207,778         125,067        198,596        59,482         106,948   
                                                                     

Fixed Charges:

                      

Interest expense

      1,069         24,685         27,285         19,377         8,211        102,828        3,514         51,267   

Interest expense relating to rent (D)

      4,947         6,967         7,405         8,625         8,968        15,298        4,445         7,610   

Capitalized interest

      —           —           —           —           700        700        —           —     
                                                                     

Total fixed charges

      6,016         31,652         34,690         28,002         17,879        118,826        7,959         58,877   
                                                                     

Ratio of earnings to fixed charges

      6.2x         1.8x         2.5x         7.4x         7.0x        1.7x        7.5x         1.8x   
                                                                     

 

(A) Ratio of earnings to fixed charges and preferred dividends is not presented as there is no preferred stock outstanding.
(B) Pro forma ratio of earnings to fixed charges has been computed on a consolidated basis after giving effect to the August 17, 2010 acquisition of Odyssey HealthCare, Inc. and the related financing of the acquisition as if they had occurred on December 29, 2008 (the first day of fiscal 2009).
(C) Income attributable to noncontrolling interests represents pre-tax income attributable to noncontrolling interests of Odyssey's non-guarantor subsidiaries.
(D) Interest expense relating to rent represents a portion of rent expense representative of the interest factor; 30% of rent expense was used for this calculation.