Exhibit 12.0
MedCath Corporation
Statement of Computation of Ratio of Earnings to Fixed Charges
(Dollars in thousands)
Statement of Computation of Ratio of Earnings to Fixed Charges
(Dollars in thousands)
Fiscal Year Ended September 30, | ||||||||||||||||||||
2002 | 2003 | 2004 | 2005 | 2006 | ||||||||||||||||
Earnings: | ||||||||||||||||||||
Income (loss) from continuing operations before minority interest, income taxes and discontinued operations | $ | 35,784 | $ | (51,625 | ) | $ | 10,890 | $ | 29,245 | $ | 26,961 | |||||||||
Equity method investment earnings | 3,007 | 3,541 | 3,113 | 3,356 | 4,919 | |||||||||||||||
32,777 | (55,166 | ) | 7,777 | 25,889 | 22,042 | |||||||||||||||
Add: | ||||||||||||||||||||
Fixed charges | $ | 22,529 | $ | 24,901 | $ | 26,169 | $ | 32,197 | $ | 33,645 | ||||||||||
Amortization of capitalized interest | 212 | 250 | 329 | 283 | 250 | |||||||||||||||
Distributed income of equity investees | 143 | 236 | 2,666 | 2,688 | 2,848 | |||||||||||||||
Less: | ||||||||||||||||||||
Capitalized interest | 1,241 | 1,241 | 386 | — | — | |||||||||||||||
Minority interest in pre-tax income of subsidiaries that have not incurred fixed charges | 8,356 | 3,815 | 456 | 1,540 | 1,521 | |||||||||||||||
Earnings as adjusted | $ | 46,064 | $ | (34,835 | ) | $ | 36,099 | $ | 59,517 | $ | 57,264 | |||||||||
Fixed Charges: | ||||||||||||||||||||
Third party interest expense | $ | 19,734 | $ | 21,950 | $ | 23,814 | $ | 30,230 | $ | 30,303 | ||||||||||
Capitalized interest | 1,241 | 1,241 | 386 | — | — | |||||||||||||||
Amortization of loan acquisition costs | 1,250 | 1,394 | 1,661 | 1,602 | 2,907 | |||||||||||||||
Estimate of the interest within rental expense | 304 | 316 | 308 | 365 | 435 | |||||||||||||||
Total fixed charges | $ | 22,529 | $ | 24,901 | $ | 26,169 | $ | 32,197 | $ | 33,645 | ||||||||||
Ratio of earnings to fixed charges/ (excess of fixed charges over earnings) | 2.04x | $ | (59,736 | ) | 1.38x | 1.85x | 1.70x |