BEVERLY ENTERPRISES, INC.
EXHIBIT 12.1
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in thousands)
| Six Months Ended | |||||||||||||||||||||||||||||
| Years ended December 31, | June 30, | ||||||||||||||||||||||||||||
| 2002 | 2001 | 2000 | 1999 | 1998 | 2003 | 2002 | |||||||||||||||||||||||
| Income (loss) before provision for (benefit from) income taxes, discontinued operations and extraordinary charge and cumulative effect of changes in accounting principles | $ | (38,352 | ) | $ | (204,489 | ) | $ | (42,098 | ) | $ | (232,285 | ) | $ | (79,629 | ) | $ | 8,765 | $ | 8,974 | ||||||||||
| Add fixed charges: | |||||||||||||||||||||||||||||
| Interest expense (including capitalized interest) | 63,109 | 74,105 | 77,142 | 69,438 | 63,437 | 30,590 | 32,106 | ||||||||||||||||||||||
| Interest factor in rent expense | 18,379 | 22,891 | 24,559 | 24,814 | 25,608 | 8,782 | 9,375 | ||||||||||||||||||||||
| Amortization of debt issue costs | 3,096 | 4,051 | 2,571 | 2,909 | 2,336 | 2,422 | 1,562 | ||||||||||||||||||||||
| Total fixed charges | 84,584 | 101,047 | 104,272 | 97,161 | 91,381 | 41,794 | 43,043 | ||||||||||||||||||||||
| Less capitalized interest | (1,492 | ) | (1,517 | ) | (2,326 | ) | (1,655 | ) | (1,365 | ) | (201 | ) | (962 | ) | |||||||||||||||
| Total earnings | $ | 44,740 | $ | (104,959 | ) | $ | 59,848 | $ | (136,779 | ) | $ | 10,387 | $ | 50,358 | $ | 51,055 | |||||||||||||
| Ratio of earnings to fixed charges | (1) | (1) | (1) | (1) | (1) | 1.20 | 1.19 | ||||||||||||||||||||||
| (1) | Earnings were inadequate to cover fixed charges by $39,844,000, $206,006,000, $44,424,000, $233,940,000 and $80,994,000 for the years ended December 31, 2002, 2001, 2000, 1999, and 1998, respectively. |
