EX-12.1 8 c78303exv12w1.txt STATEMENT RE: COMPUTATION OF RATIOS Exhibit 12.1 Manor Care, Inc. Computation of Ratio of Earnings to Fixed Charges (In thousands, except ratios)
3 MONTHS ENDED MARCH 31, YEARS ENDED DECEMBER 31, ------------------------ ------------------------------------------------------- 2003 2002 2002 2001 2000 1999 1998 ---- ---- ---- ---- ---- ---- ---- EARNINGS AVAILABLE TO COVER FIXED CHARGES: Income (loss) from continuing $50,206 $54,418 $212,684 $129,992 $61,669 $(102,396) $(24,565) operations before income taxes and minority interests............ Less: Equity in earnings of affiliates, (1,541) (736) (4,761) (4,543) (2,016) (2,276) (5,376) excluding affiliate with guaranteed debt............... Add: Dividends received from equity affiliate...... 1,971 2,182 3,026 11,574 6,000 -- -- Fixed charges deducted from earnings (see below)............. 11,968 12,454 51,173 64,751 75,511 67,838 62,613 ------ ------ ------ ------ ------- ------ ------ Earnings available to cover fixed charges............................... $62,604 $68,318 $262,122 $201,774 $141,164 $(36,834) $32,672 ======= ======= ======== ======== ======== ======== ======= FIXED CHARGES: Interest expense, including amounts in operating expense............... $ 9,463 $9,949 $41,395 $55,458 $66,460 $60,646 $55,340 Interest within rent expense......... 2,505 2,505 9,778 9,293 9,051 7,192 7,273 ------ ------ ------ ------ ------- ------ ------ Fixed charges deducted from 11,968 12,454 51,173 64,751 75,511 67,838 62,613 earnings.......................... Interest expense on guaranteed debt -- -- -- 2,272 4,309 922 -- of affiliate..................... Interest capitalized................... 182 287 721 1,933 4,457 3,235 8,623 ------ ------ ------ ------ ------- ------ ------ Fixed charges........................ $12,150 $12,741 $51,894 $68,956 $84,277 $71,995 $71,236 ======= ======= ======= ======= ======= ======= ======= RATIO OF EARNINGS TO FIXED CHARGES (1).......................... 5.2x 5.4x 5.1x 2.9x 1.7x -- -- ======= ======= ======= ======= =======
(1)We do not show a ratio for 1998 and 1999 because earnings were insufficient to cover fixed charges by $38.6 million in 1998 and $108.8 million in 1999.