EXHIBIT 12
Statement of Computation of Ratio of Earnings to Fixed Charges
Omnicare, Inc. and Subsidiary Companies
(in thousands, except ratios)
Unaudited
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| Three months ended |
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| 2009 |
| 2008 |
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Income before income taxes |
| $ | 59,628 | (1) | $ | 43,733 | (1) |
Add fixed charges: |
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Interest expense, excluding amortization of disount on convertible notes (Note 5) |
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| 29,468 |
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| 35,020 |
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Amortization of discount on convertible notes (Note 5) |
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| 6,797 |
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| 6,300 |
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Amortization of debt expense |
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| 1,824 |
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| 1,802 |
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Interest portion of rent expense |
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| 6,806 |
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| 6,465 |
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Adjusted income |
| $ | 104,523 |
| $ | 93,320 |
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Fixed charges: |
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Interest expense, excluding amortization of discount on convertible notes (Note 5) |
| $ | 29,468 |
| $ | 35,020 |
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Amortization of discount on convertible notes (Note 5) |
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| 6,797 |
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| 6,300 |
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Amortization of debt expense |
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| 1,824 |
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| 1,802 |
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Interest portion of rent expense |
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| 6,806 |
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| 6,465 |
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Fixed charges |
| $ | 44,895 |
| $ | 49,587 |
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Ratio of earnings to fixed charges(2) |
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| 2.3 | x |
| 1.9 | x |
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(1) Income before income taxes includes the following certain special items and accounting change impacts (pretax) including the following (as further discussed in the “MD&A” at Part I, Item 2 of this Filing):
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| Three months ended |
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| 2009 |
| 2008 |
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Restructuring and other related charges (a) |
| $ | 6,917 |
| $ | 6,448 |
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Litigation and other related professional fees (b) |
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| 41,665 |
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| 21,642 |
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Heartland matters (b) |
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| 1,993 |
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| 1,893 |
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| (a) See the “Restructuring and Other Related Charges” note of the Notes to the Consolidated Financial Statements. |
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| (b) See the “Commitments and Contingencies” note of the Notes to the Consolidated Financial Statements. |
(2) The ratio of earnings to fixed charges has been computed by adding income before income taxes and fixed charges to derive adjusted income, and dividing adjusted income by fixed charges. Fixed charges consist of interest expense on debt (including the amortization of debt expense) and one-third (the proportion deemed representative of the interest portion) of rent expense.
(3) Effective January 1, 2009, Omnicare adopted the provisions of FSP APB 14-1. Financial statements for 2008 and prior periods have been restated for this change in accounting.