Exhibit 12.1
Manor Care, Inc.
Computation of Ratio of Earnings to Fixed Charges
(In thousands, except ratios)
Computation of Ratio of Earnings to Fixed Charges
(In thousands, except ratios)
Six months ended June 30, | Year ended December 31, | |||||||||||||||||||||||||||
2006 | 2005 | 2005 | 2004 | 2003 | 2002 | 2001 | ||||||||||||||||||||||
Earnings Available to Cover Fixed Charges: | ||||||||||||||||||||||||||||
Income from continuing operations before income taxes | $ | 115,163 | $ | 122,341 | $ | 257,672 | $ | 254,879 | $ | 190,412 | $ | 212,684 | $ | 129,992 | ||||||||||||||
Less: | ||||||||||||||||||||||||||||
Equity in earnings of affiliates, excluding affiliate with guaranteed debt | (3,587 | ) | (2,823 | ) | (5,492 | ) | (6,975 | ) | (7,236 | ) | (4,761 | ) | (4,543 | ) | ||||||||||||||
Add: | ||||||||||||||||||||||||||||
Dividends received from equity affiliates | 1,951 | 2,489 | 3,231 | 1,956 | 4,750 | 3,026 | 11,574 | |||||||||||||||||||||
Losses of minority interests | (483 | ) | (134 | ) | (724 | ) | (83 | ) | (35 | ) | — | — | ||||||||||||||||
Fixed charges deducted from earnings (see below) | 18,066 | 25,409 | 69,219 | 62,684 | 53,000 | 51,173 | 64,751 | |||||||||||||||||||||
Earnings available to cover fixed charges | $ | 131,110 | $ | 147,282 | $ | 323,906 | $ | 312,461 | $ | 240,891 | $ | 262,122 | $ | 201,774 | ||||||||||||||
Fixed Charges: | ||||||||||||||||||||||||||||
Interest expense, including amounts in operating expense | $ | 15,238 | $ | 20,824 | $ | 61,204 | $ | 55,194 | $ | 44,600 | $ | 41,395 | $ | 55,458 | ||||||||||||||
Interest within rent expense | 2,828 | 4,585 | 8,015 | 7,490 | 8,400 | 9,778 | 9,293 | |||||||||||||||||||||
Fixed charges deducted from earnings | 18,066 | 25,409 | 69,219 | 62,684 | 53,000 | 51,173 | 64,751 | |||||||||||||||||||||
Interest expense on guaranteed debt of affiliate | — | — | — | — | — | — | 2,272 | |||||||||||||||||||||
Interest capitalized | 526 | 603 | 990 | 1,002 | 671 | 721 | 1,933 | |||||||||||||||||||||
Fixed charges | $ | 18,592 | $ | 26,012 | $ | 70,209 | $ | 63,686 | $ | 53,671 | $ | 51,894 | $ | 68,956 | ||||||||||||||
Ratio of Earnings to Fixed Charges | 7.1x | 5.7x | 4.6x | 4.9x | 4.5x | 5.1x | 2.9x | |||||||||||||||||||||