EX-12.1 4 d230675dex121.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,     Six  months
ended
June 30, 2011		  
     2006     2007     2008     2009     2010    

COMPUTATION OF FIXED CHARGES:

             

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

    $ 14,837      $ 19,638      $ 18,246      $ 10,108      $ 8,374      $ 29,190 (1) 

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

      1        6        2        9        1        —     

Interest component of rental expense(2)

      106,803        117,936        115,945        117,273        119,168        62,396   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fixed charges

    $ 121,641      $ 137,580      $ 134,193      $ 127,390      $ 127,543      $ 91,586   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

COMPUTATION OF EARNINGS:

             

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

    $ 131,850      $ 77,198      $ 96,307      $ 99,802      $ 87,807 (3)    $ 26,798 (1)(3) 

Fixed charges

      121,641        137,580        134,193        127,390        127,543        91,586 (1) 

Distributed income of equity investees

      2,769        514        7,749        2,477        700        1,000   

Amortization of capitalized interest, less interest capitalized

      (917 )      (2,579 )      (2,800 )      (2,080 )      (1,015 )      (89 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
   $ 255,343      $ 212,713      $ 235,449      $ 227,589      $ 215,035      $ 119,295   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

RATIO OF EARNINGS TO FIXED CHARGES

      2.10x        1.55x        1.75x        1.79x        1.69x        1.30x   

 

(1) Includes financing costs related to the RehabCare Acquisition totaling $13.8 million.
(2) Management has estimated the interest component of rent expense to be 33%.
(3) Includes transaction costs related to the RehabCare Acquisition totaling $0.7 million for the year ended December 31, 2010 and $37.9 million for the six months ended June 30, 2011.