EXHIBIT 12.1
GENTIVA HEALTH SERVICES, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (A)
($ in thousands)
| Fiscal Year Ended | Six Months Ended July 4, 2010 | Six Months Ended July 4, 2010 (B) | ||||||||||||||||||||||||||||||
| January 1, 2006 | December 31, 2006 | December 30, 2007 | December 28, 2008 | January 3, 2010 | January 3, 2010 (B) | |||||||||||||||||||||||||||
| (52 weeks) | (52 weeks) | (52 weeks) | (52 weeks) | (53 weeks) | (53 weeks) | (Proforma) | ||||||||||||||||||||||||||
| (Proforma) | ||||||||||||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||||||||||
Income from continuing operations before income taxes and equity in net earnings of affiliate | 31,536 | 24,947 | 53,588 | 179,776 | 107,888 | 81,522 | 51,523 | 48,884 | ||||||||||||||||||||||||
Add: fixed charges | 6,016 | 31,652 | 34,690 | 28,002 | 17,879 | 118,826 | 7,959 | 58,877 | ||||||||||||||||||||||||
Less: Capitalized interest | — | — | — | — | (700 | ) | (700 | ) | — | — | ||||||||||||||||||||||
Less: Income attributable to noncontrolling interests (C) | — | — | — | — | — | (1,052 | ) | — | (813 | ) | ||||||||||||||||||||||
Total earnings | 37,552 | 56,599 | 88,278 | 207,778 | 125,067 | 198,596 | 59,482 | 106,948 | ||||||||||||||||||||||||
Fixed Charges: | ||||||||||||||||||||||||||||||||
Interest expense | 1,069 | 24,685 | 27,285 | 19,377 | 8,211 | 102,828 | 3,514 | 51,267 | ||||||||||||||||||||||||
Interest expense relating to rent (D) | 4,947 | 6,967 | 7,405 | 8,625 | 8,968 | 15,298 | 4,445 | 7,610 | ||||||||||||||||||||||||
Capitalized interest | — | — | — | — | 700 | 700 | — | — | ||||||||||||||||||||||||
Total fixed charges | 6,016 | 31,652 | 34,690 | 28,002 | 17,879 | 118,826 | 7,959 | 58,877 | ||||||||||||||||||||||||
Ratio of earnings to fixed charges | 6.2x | 1.8x | 2.5x | 7.4x | 7.0x | 1.7x | 7.5x | 1.8x | ||||||||||||||||||||||||
| (A) | Ratio of earnings to fixed charges and preferred dividends is not presented as there is no preferred stock outstanding. |
| (B) | Pro forma ratio of earnings to fixed charges has been computed on a consolidated basis after giving effect to the August 17, 2010 acquisition of Odyssey HealthCare, Inc. and the related financing of the acquisition as if they had occurred on December 29, 2008 (the first day of fiscal 2009). |
| (C) | Income attributable to noncontrolling interests represents pre-tax income attributable to noncontrolling interests of Odyssey's non-guarantor subsidiaries. |
| (D) | Interest expense relating to rent represents a portion of rent expense representative of the interest factor; 30% of rent expense was used for this calculation. |