EX-12.1 7 d829606dex121.htm EX-12.1 EX-12.1

Exhibit 12.1

Kindred Healthcare, Inc.

Statement of Computation of Ratio of Earnings to Fixed Charges

(In thousands, except statistics)

 

     Year Ended December 31,     Nine Months
ended
September 30,
 
     2009     2010     2011     2012     2013     2014  

COMPUTATION OF FIXED CHARGES

            

Interest expensed and capitalized in continuing operations, including amortization of debt discounts and fees

   $ 10,005      $ 8,271      $ 82,355      $ 110,236      $ 108,082      $ 128,855   

Interest expensed and capitalized in discontinued operations, including amortization of debt discounts and fees

     112        104        78        71        52        16   

Interest component of rental expense(1)

     122,049        124,169        137,715        148,086        141,806        91,143   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total fixed charges

   $ 132,166      $ 132,544      $ 220,148      $ 258,393      $ 249,940      $ 220,014   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

COMPUTATION OF EARNINGS:

            

Pretax income from continuing operations before adjustment for noncontrolling interest in consolidated subsidiaries and income or loss from equity investees

   $ 39,264      $ 25,899      $ (82,501 )   $ (17,041 )   $ (54,721 )   $ 9,704 (2)

Fixed charges

     132,166        132,544        220,148        258,393        249,940        220,014   

Distributed income of equity investees

     2,477        700        2,865        1,917        1,580        272   

Amortization of capitalized interest, less interest capitalized

     (2,080 )     (1,015 )     (1,241 )     (2,104 )     87        149   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
   $ 171,827      $ 158,128      $ 139,271      $ 241,165      $ 196,886      $ 230,139   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

RATIO OF EARNINGS TO FIXED CHARGES

     1.30x        1.19x        0.63x        0.93x        0.79x        1.05x   

 

(1) Management has estimated the interest component of rent expense to be 33%.
(2) Includes transaction costs related to the acquisition of Gentiva Health Services, Inc. totaling $5.3 million.