Exhibit 12.1
Gentiva Health Services, Inc.
Statement regarding Computation of
Ratio of Earnings to Fixed Charges
(in thousands, except ratio data)
| Fiscal Year Ended | For the Six Months Ended | |||||||||||||||||||||
| December 29, 2002 | December 28, 2003 | January 2, 2005 | January 1, 2006 | December 31, 2006 | July 2, 2006 | July 1, 2007 | ||||||||||||||||
Earnings (1) | ||||||||||||||||||||||
Income (loss) before income taxes from continuing operations | $ | (35,106 | ) | $ | 23,298 | $ | 40,181 | $ | 31,842 | $ | 32,642 | $ | 17,190 | $ | 27,467 | |||||||
Fixed charges | 8,259 | 6,366 | 6,571 | 6,901 | 33,470 | 14,035 | 18,683 | |||||||||||||||
Total earnings | $ | (26,847 | ) | $ | 29,664 | $ | 46,752 | $ | 38,743 | $ | 66,112 | $ | 31,225 | $ | 46,150 | |||||||
Fixed Charges (1) | ||||||||||||||||||||||
Interest expense | $ | 1,556 | $ | 1,065 | $ | 1,055 | $ | 1,068 | $ | 24,685 | $ | 9,974 | $ | 14,085 | ||||||||
Amortization of debt issuance costs | 772 | 373 | 381 | 387 | 1,028 | 400 | 508 | |||||||||||||||
Interest portion of rent expense (2) | 5,931 | 4,928 | 5,135 | 5,446 | 7,757 | 3,661 | 4,090 | |||||||||||||||
Total Fixed Charges | $ | 8,259 | $ | 6,366 | $ | 6,571 | $ | 6,901 | $ | 33,470 | $ | 14,035 | $ | 18,683 | ||||||||
Ratio of Earnings to Fixed Charges (3) | — | 4.7 | 7.1 | 5.6 | 2.0 | 2.2 | 2.5 | |||||||||||||||
| (1) | “Earnings” is the sum of (a) income (loss) before income taxes from continuing operations and (b) fixed charges. “Fixed charges” is the sum of (a) interest expense, (b) amortization of debt issuance costs, and (c) the interest portion of rent expense. |
| (2) | The interest portion of rent expense is estimated to be equal to one-third of the Company's rent expense, exclusive of charges for taxes, insurance and maintenance, for each period presented. |
| (3) | Due to the Company's reported loss before income taxes from continuing operations in the fiscal year ended December 29, 2002, the ratio of earnings to fixed charges was less than 1:1 and earnings were insufficient to cover fixed charges by $35.1 million. |