EX-12.1 2 d18466a1exv12w1.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES exv12w1
 

BEVERLY ENTERPRISES, INC.

EXHIBIT 12.1

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Dollars in thousands)

                                                         
                                            Nine Months Ended
    Years ended December 31,
   September 30,
    2003
   2002
   2001
   2000
   1999
   2004
   2003
Income (loss) before provision for (benefit from) income taxes, discontinued operations and extraordinary charge and cumulative effect of changes in accounting principles
   $ 31,884     $ (28,858 )   $ (221,152 )   $ (82,001 )   $ (278,189 )   $ 29,844     $ 19,518  
 
    
 		      
 		      
 		      
 		      
 		      
 		      
 		  
Add fixed charges:
                                                        
Interest expense (including capitalized interest)
     59,273       61,048       71,883       74,875       67,141       33,322       44,429  
Costs related to early extinguishments of debt
     6,634       —       —       —       —       40,430       —  
Interest factor in rent expense
     12,338       13,562       18,018       19,595       19,958       9,343       9,221  
Amortization of debt issue costs
     4,474       3,096       4,051       2,571       2,909       2,107       3,655  
Amortization of debt discounts
     —       —       —       —       39       61       —  
 
    
 		      
 		      
 		      
 		      
 		      
 		      
 		  
Total fixed charges
     82,719       77,706       93,952       97,041       90,047       85,263       57,305  
 
    
 		      
 		      
 		      
 		      
 		      
 		      
 		  
Less capitalized interest
     (433 )     (1,492 )     (1,517 )     (2,326 )     (1,655 )     (422 )     (323 )
 
    
 		      
 		      
 		      
 		      
 		      
 		      
 		  
Total earnings
   $ 114,170     $ 47,356     $ (128,717 )   $ 12,714     $ (189,797 )   $ 114,685     $ 76,500  
 
    
 		      
 		      
 		      
 		      
 		      
 		      
 		  
Ratio of earnings to fixed charges
     1.38       (1 )     (1 )     (1 )     (1 )     1.35       1.33  
 
    
 		      
 		      
 		      
 		      
 		      
 		      
 		  

(1)   Earnings were inadequate to cover fixed charges by $30,350,000, $222,669,000, $84,327,000 and $279,844,000 for the years ended December 31, 2002, 2001, 2000 and 1999, respectively.