Exhibit 12.1
FIVE STAR QUALITY CARE, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(in thousands except ratios)
| Nine months ended September 30, | Year ended December 31, | ||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2009 | 2008 | 2008 | 2007 | 2006 | 2005 | 2004 | |||||||||||||||||
Consolidated earnings (loss) | $ | 136,944 | $ | 101,363 | $ | 129,664 | $ | 135,030 | $ | (19,155 | ) | $ | (5,678 | ) | $ | 67,809 | ||||||||
Consolidated fixed charges | 96,301 | 93,266 | 127,581 | 107,106 | 90,612 | 74,400 | 62,657 | |||||||||||||||||
Ratio of consolidated earnings to fixed charges | 1.4 | x | 1.1 | x | 1.0 | x | 1.3 | x | — | (1) | — | (1) | 1.1 | x | ||||||||||
Deficiency | — | — | — | — | 109,767 | 80,078 | — | |||||||||||||||||
Calculation of consolidated earnings (loss): | ||||||||||||||||||||||||
Consolidated income (loss) from continuing operations before income tax | $ | 40,643 | $ | 8,097 | $ | 2,083 | $ | 27,924 | $ | (109,767 | ) | $ | (80,078 | ) | $ | 5,152 | ||||||||
Consolidated fixed charges | 96,301 | 93,266 | 127,581 | 107,106 | 90,612 | 74,400 | 62,657 | |||||||||||||||||
Consolidated earnings (loss) | $ | 136,944 | $ | 101,363 | $ | 129,664 | $ | 135,030 | $ | (19,155 | ) | $ | (5,678 | ) | $ | 67,809 | ||||||||
Calculation of fixed charges: | ||||||||||||||||||||||||
Interest expense | 3,287 | 4,681 | 6,070 | 6,335 | 3,791 | 3,043 | 881 | |||||||||||||||||
Estimated interest component of rent expense | 92,911 | 88,376 | 121,244 | 100,304 | 86,248 | 70,769 | 61,487 | |||||||||||||||||
Amortization of debt discounts / premiums | — | 34 | 34 | 49 | 191 | 193 | — | |||||||||||||||||
Amortization of capitalized deferred finance costs | 103 | 175 | 233 | 418 | 382 | 395 | 289 | |||||||||||||||||
Fixed charges | $ | 96,301 | $ | 93,266 | $ | 127,581 | $ | 107,106 | $ | 90,612 | $ | 74,400 | $ | 62,657 | ||||||||||
- (1)
- Earnings were insufficient to cover fixed charges by approximately $109.8 million and $80.1 million for the years ended December 31, 2006 and 2005, respectively; accordingly, no ratio is presented for such periods.