BEVERLY ENTERPRISES, INC.
EXHIBIT 12.1
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in thousands)
| Nine Months Ended | ||||||||||||||||||||||||||||
| Years ended December 31, | September 30, | |||||||||||||||||||||||||||
| 2003 | 2002 | 2001 | 2000 | 1999 | 2004 | 2003 | ||||||||||||||||||||||
| Income (loss) before provision for (benefit from) income taxes, discontinued operations and extraordinary charge and cumulative effect of changes in accounting principles | $ | 31,884 | $ | (28,858 | ) | $ | (221,152 | ) | $ | (82,001 | ) | $ | (278,189 | ) | $ | 29,844 | $ | 19,518 | ||||||||||
| Add fixed charges: | ||||||||||||||||||||||||||||
| Interest expense (including capitalized interest) | 59,273 | 61,048 | 71,883 | 74,875 | 67,141 | 33,322 | 44,429 | |||||||||||||||||||||
| Costs related to early extinguishments of debt | 6,634 | — | — | — | — | 40,430 | — | |||||||||||||||||||||
| Interest factor in rent expense | 12,338 | 13,562 | 18,018 | 19,595 | 19,958 | 9,343 | 9,221 | |||||||||||||||||||||
| Amortization of debt issue costs | 4,474 | 3,096 | 4,051 | 2,571 | 2,909 | 2,107 | 3,655 | |||||||||||||||||||||
| Amortization of debt discounts | — | — | — | — | 39 | 61 | — | |||||||||||||||||||||
| Total fixed charges | 82,719 | 77,706 | 93,952 | 97,041 | 90,047 | 85,263 | 57,305 | |||||||||||||||||||||
| Less capitalized interest | (433 | ) | (1,492 | ) | (1,517 | ) | (2,326 | ) | (1,655 | ) | (422 | ) | (323 | ) | ||||||||||||||
| Total earnings | $ | 114,170 | $ | 47,356 | $ | (128,717 | ) | $ | 12,714 | $ | (189,797 | ) | $ | 114,685 | $ | 76,500 | ||||||||||||
| Ratio of earnings to fixed charges | 1.38 | (1 | ) | (1 | ) | (1 | ) | (1 | ) | 1.35 | 1.33 | |||||||||||||||||
| (1) | Earnings were inadequate to cover fixed charges by $30,350,000, $222,669,000, $84,327,000 and $279,844,000 for the years ended December 31, 2002, 2001, 2000 and 1999, respectively. |