Exhibit 12
Statement of Computation of Ratio of Earnings to Fixed Charges
Omnicare, Inc. and Subsidiary Companies
(in thousands, except ratio)
Unaudited
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| Three months ended |
| Six months ended |
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| June 30, |
| June 30, |
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| 2006 |
| 2005 |
| 2006 |
| 2005 |
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Income before income taxes(1) |
| $ | 44,149 |
| $ | 98,503 |
| $ | 130,896 |
| $ | 191,300 |
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Add fixed charges: |
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Interest expense |
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| 41,082 |
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| 19,295 |
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| 81,514 |
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| 38,041 |
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Amortization of debt expense |
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| 1,987 |
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| 1,144 |
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| 3,967 |
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| 2,317 |
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Interest portion of rent expense |
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| 5,470 |
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| 4,125 |
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| 11,199 |
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| 8,503 |
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Adjusted income(1) |
| $ | 92,688 |
| $ | 123,067 |
| $ | 227,576 |
| $ | 240,161 |
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Fixed charges: |
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Interest expense |
| $ | 41,082 |
| $ | 19,295 |
| $ | 81,514 |
| $ | 38,041 |
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Amortization of debt expense |
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| 1,987 |
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| 1,144 |
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| 3,967 |
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| 2,317 |
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Interest portion of rent expense |
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| 5,470 |
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| 4,125 |
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| 11,199 |
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| 8,503 |
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Fixed charges |
| $ | 48,539 |
| $ | 24,564 |
| $ | 96,680 |
| $ | 48,861 |
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Ratio of earnings to fixed charges(2) |
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| 1.9 | x |
| 5.0 | x |
| 2.4 | x |
| 4.9 | x |
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(1) Includes the following pretax charges: |
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| Three months ended |
| Six months ended |
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| June 30, |
| June 30, |
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| 2006 |
| 2005 |
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Restructuring and other related charges (a) |
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| 11,889 |
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| — |
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| 19,602 |
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| — |
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Litigation charges (b) |
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| 74,832 |
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| — |
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| 108,932 |
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| — |
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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 “Subsequent Events” and “Commitments and Contingencies” notes of the Notes to the Consolidated Financial Statements. |
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(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. |