Exhibit 12.1
FIVE STAR QUALITY CARE, INC.
Computation of Ratio of Earnings to Fixed Charges
(in thousands except ratios)
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| Nine Months |
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| Ended September 30, |
| Year ended December 31, |
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| 2012 |
| 2011 |
| 2010 |
| 2009 |
| 2008 |
| 2007 |
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Earnings |
| $ | 106,768 |
| $ | 193,007 |
| $ | 192,977 |
| $ | 177,884 |
| $ | 137,703 |
| $ | 133,769 |
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Fixed charges |
| 92,234 |
| 176,212 |
| 166,062 |
| 134,039 |
| 127,451 |
| 106,837 |
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Ratio of earnings to fixed charges |
| 1.2x |
| 1.1x |
| 1.2x |
| 1.3x |
| 1.1x |
| 1.3x |
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Calculation of earnings: |
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Income from continuing operations before income tax |
| $ | 14,770 |
| $ | 16,934 |
| $ | 26,914 |
| $ | 43,711 |
| $ | 10,252 |
| $ | 26,932 |
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Equity in (earnings) losses of AIC |
| (236 | ) | (139 | ) | 1 |
| 134 |
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| — |
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Fixed charges |
| 92,234 |
| 176,212 |
| 166,062 |
| 134,039 |
| 127,451 |
| 106,837 |
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Adjusted earnings |
| $ | 106,768 |
| $ | 193,007 |
| $ | 192,977 |
| $ | 177,884 |
| $ | 137,703 |
| $ | 133,769 |
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Calculation of fixed charges: |
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Interest expense |
| $ | 4,881 |
| $ | 4,171 |
| $ | 2,945 |
| $ | 4,235 |
| $ | 6,070 |
| $ | 6,094 |
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Amortization of debt discounts / premiums |
| 157 |
| 83 |
| — |
| — |
| 34 |
| 49 |
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Amortization of deferred finance costs |
| 82 |
| 123 |
| 100 |
| 130 |
| 233 |
| 409 |
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Estimated interest component of rent expense |
| 87,114 |
| 171,835 |
| 163,017 |
| 129,674 |
| 121,114 |
| 100,285 |
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Fixed charges |
| $ | 92,234 |
| $ | 176,212 |
| $ | 166,062 |
| $ | 134,039 |
| $ | 127,451 |
| $ | 106,837 |
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