Exhibit 12.1
Kindred Healthcare, Inc.
Statement of Computation of Ratio of Earnings to Fixed Charges
(In thousands, except statistics)
Year Ended December 31, | Nine Months ended September 30, | |||||||||||||||||||||||
2009 | 2010 | 2011 | 2012 | 2013 | 2014 | |||||||||||||||||||
COMPUTATION OF FIXED CHARGES | ||||||||||||||||||||||||
Interest expensed and capitalized in continuing operations, including amortization of debt discounts and fees | $ | 10,005 | $ | 8,271 | $ | 82,355 | $ | 110,236 | $ | 108,082 | $ | 128,855 | ||||||||||||
Interest expensed and capitalized in discontinued operations, including amortization of debt discounts and fees | 112 | 104 | 78 | 71 | 52 | 16 | ||||||||||||||||||
Interest component of rental expense(1) | 122,049 | 124,169 | 137,715 | 148,086 | 141,806 | 91,143 | ||||||||||||||||||
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Total fixed charges | $ | 132,166 | $ | 132,544 | $ | 220,148 | $ | 258,393 | $ | 249,940 | $ | 220,014 | ||||||||||||
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COMPUTATION OF EARNINGS: | ||||||||||||||||||||||||
Pretax income from continuing operations before adjustment for noncontrolling interest in consolidated subsidiaries and income or loss from equity investees | $ | 39,264 | $ | 25,899 | $ | (82,501 | ) | $ | (17,041 | ) | $ | (54,721 | ) | $ | 9,704 | (2) | ||||||||
Fixed charges | 132,166 | 132,544 | 220,148 | 258,393 | 249,940 | 220,014 | ||||||||||||||||||
Distributed income of equity investees | 2,477 | 700 | 2,865 | 1,917 | 1,580 | 272 | ||||||||||||||||||
Amortization of capitalized interest, less interest capitalized | (2,080 | ) | (1,015 | ) | (1,241 | ) | (2,104 | ) | 87 | 149 | ||||||||||||||
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$ | 171,827 | $ | 158,128 | $ | 139,271 | $ | 241,165 | $ | 196,886 | $ | 230,139 | |||||||||||||
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RATIO OF EARNINGS TO FIXED CHARGES | 1.30x | 1.19x | 0.63x | 0.93x | 0.79x | 1.05x |
(1) | Management has estimated the interest component of rent expense to be 33%. |
(2) | Includes transaction costs related to the acquisition of Gentiva Health Services, Inc. totaling $5.3 million. |