Exhibit 12 American Retirement Corporation |
Qtr ended | Year Ended December 31, | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
3/31/04 | 2003 | 2002 | 2001 | 2000 | 1999 | ||||||||||||||||
Earnings: | |||||||||||||||||||||
Pretax income (loss) from continuing | |||||||||||||||||||||
operations before minority interests and | |||||||||||||||||||||
income or loss from equity investees | (3,517 | ) | (12,385 | ) | (94,940 | ) | (47,358 | ) | (7,449 | ) | 6,759 | ||||||||||
Plus: Fixed charges | 24,815 | 101,234 | 121,135 | 76,496 | 58,143 | 40,577 | |||||||||||||||
Amortization of capitalized interest | 20 | 81 | 74 | 68 | 62 | 36 | |||||||||||||||
Distributions from equity investees | -- | 175 | -- | -- | -- | -- | |||||||||||||||
Less: Capitalized interest | -- | -- | (15 | ) | (861 | ) | (1,422 | ) | (2,136 | ) | |||||||||||
Total earnings | 21,318 | 89,105 | 26,254 | 28,345 | 49,334 | 45,236 | |||||||||||||||
Fixed charges: | |||||||||||||||||||||
Interest expense, including amortized | |||||||||||||||||||||
premiums, discounts and capitalized | |||||||||||||||||||||
expenses related to indebtedness | 9,701 | 53,570 | 48,855 | 40,268 | 38,454 | 25,456 | |||||||||||||||
Capitalized interest | -- | -- | 15 | 861 | 1,422 | 2,136 | |||||||||||||||
Rental expense | 15,114 | 47,664 | 72,265 | 35,367 | 18,267 | 12,985 | |||||||||||||||
Total fixed charges | 24,815 | 101,234 | 121,135 | 76,496 | 58,143 | 40,577 | |||||||||||||||
Ratio of earnings to fixed charges | 0.86 | 0.88 | 0.22 | 0.37 | 0.85 | 1.11 | |||||||||||||||
Earnings required to cover fixed charges | 3,497 | 12,129 | 94,881 | 48,151 | 8,809 | -- |
For purposes of this computation, earnings are defined as income (loss) before income taxes and adjustment for minority interests in consolidated subsidiaries or income or loss from equity investees, plus fixed charges, amortization of capitalized interest and distributed income of equity investees, less capitalized interest. Fixed charges are defined as the sum of interest expensed and capitalized, amortized premiums, discounts and capitalized expenses related to indebtedness and an estimate of the interest within rent expense. |