EX-12.1 7 l87647aex12-1.txt EXHIBIT 12.1 1 Exhibit 12.1 Manor Care, Inc. Computation of Ratio of Earnings to Fixed Charges (In thousands, except ratios)
Years ended December 31, -------------------------------------------------------------------- Adjusted 2000 2000 1999 1998 1997 1996 ---- ---- ---- ---- ---- ---- EARNINGS AVAILABLE TO COVER FIXED CHARGES: Income (loss) from continuing operations before income taxes and minority interests ........... $ 60,635 $ 61,669 $(102,396) $ (24,565) $ 227,110 $ 180,647 Less: Equity in earnings of affiliates, excluding affiliate with guaranteed debt........... (2,016) (2,016) (2,276) (5,376) (2,806) (1,500) Add: Dividends received from equity affiliate................. 6,000 6,000 -- -- -- -- Fixed charges deducted from earnings (see below) 76,545 75,511 67,838 62,613 88,279 75,744 --------- --------- --------- --------- --------- --------- Earnings available to cover fixed charges....................... $ 141,164 $ 141,164 $ (36,834) $ 32,672 $ 312,583 $ 254,891 ========= ========= ========= ========= ========= ========= FIXED CHARGES: Interest expense, including amounts in operating expense................ $ 66,460 $ 66,460 $ 60,646 $ 55,340 $ 79,309 $ 68,915 Interest within rent expense.......... 9,051 9,051 7,192 7,273 8,970 6,829 Adjusted interest expense and amortization of financing costs .. 1,034 -- -- -- -- -- --------- --------- --------- --------- --------- --------- Fixed charges deducted from earnings....................... 76,545 75,511 67,838 62,613 88,279 75,744 Interest expense on guaranteed debt of affiliate..................... 4,309 4,309 922 -- -- -- Interest capitalized............... 4,457 4,457 3,235 8,623 4,887 5,657 --------- --------- --------- --------- --------- --------- Fixed charges..................... $ 85,311 $ 84,277 $ 71,995 $ 71,236 $ 93,166 $ 81,401 ========= ========= ========= ========= ========= ========= RATIO OF EARNINGS TO FIXED CHARGES (1)................... 1.7x 1.7x 3.4x 3.1x ========= ========= ========= =========
(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.