Exhibit 12.1
SKILLED HEALTHCARE GROUP, INC.
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
(in thousands, except ratio amounts)
Year | Year | Year | Year | Year | Nine months | Nine months | ||||||||||||||||||||||
ended | ended | ended | ended | ended | ended | ended | ||||||||||||||||||||||
2001 | 2002 | 2003 | 2004 | 2005 | 30-Sept-05 | 30-Sept-06 | ||||||||||||||||||||||
Interest expense | $ | 27,538 | $ | 25,175 | $ | 27,486 | $ | 22,370 | $ | 27,629 | $ | 19,037 | $ | 34,532 | ||||||||||||||
Deferred financing fees | ||||||||||||||||||||||||||||
Amortization | 3,682 | 1,893 | 1,550 | 1,155 | 1,657 | 1,246 | 2,155 | |||||||||||||||||||||
Preference security dividend | — | — | — | 782 | 830 | 830 | — | |||||||||||||||||||||
Interest portion of rental expense | 2,611 | 2,636 | 3,004 | 4,111 | 4,776 | 3,582 | 3,780 | |||||||||||||||||||||
Total fixed charges | 33,831 | 29,704 | 32,040 | 28,418 | 34,892 | 24,695 | 40,467 | |||||||||||||||||||||
(Loss) income before (benefit from) provision for income taxes, discontinued operations and cumulative effect of a change in accounting principle | (143,928 | ) | (2,145 | ) | (5,296 | ) | 18,153 | 7,778 | 19,241 | 20,038 | ||||||||||||||||||
Plus: | ||||||||||||||||||||||||||||
Fixed charges | 33,831 | 29,704 | 32,040 | 28,418 | 34,892 | 24,695 | 40,467 | |||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||
Preference security dividend of consolidated subsidiaries | — | — | — | (782 | ) | (830 | ) | (830 | ) | — | ||||||||||||||||||
(Losses) earnings | $ | (110,097 | ) | $ | 27,559 | $ | 26,744 | $ | 45,789 | $ | 41,840 | $ | 43,106 | $ | 60,505 | |||||||||||||
Fixed charges | $ | 33,831 | $ | 29,704 | $ | 32,040 | $ | 28,418 | $ | 34,892 | $ | 24,695 | $ | 40,467 | ||||||||||||||
Ratio of earnings to fixed charges | (3.25 | ) | 0.93 | 0.83 | 1.61 | 1.20 | 1.75 | 1.50 | ||||||||||||||||||||
Earnings shortfall | $ | (143,928 | ) | $ | (2,145 | ) | $ | (5,296 | ) | |||||||||||||||||||