EXHIBIT 12.2
NATIONAL MEDICAL ENTERPRISES, INC. AND SUBSIDIARIES
STATEMENT RE: COMPUTATION OF RATIO OF PRO FORMA EARNINGS TO FIXED CHARGES
For the six months ended November 30, 1994
Historical NME NME Historical Pro Forma Pro Forma
NME Adjustments As Adjusted AMH Adjustments Combined
---------- ----------- ----------- ---------- ----------- -----------
Income from continuing
operations before income taxes...... $183,246 $(31,900) $151,346 $ 85,600 $(56,200) $180,746
Less: Equity in Earnings of
Unconsolidated Affiliates........... (12,462) 100 (12,362) - - (12,362)
Add:
Cash dividends received from
unconsolidated affiliates......... 894 - 894 - - 894
Portion of rents representative
of interest....................... 13,014 (188) 12,826 8,900 - 21,726
Interest, net of capitalized
portion........................... 35,006 - 35,006 79,700 51,100 165,806
Amortization of previously
capitalized interest.............. 1,939 - 1,939 - - 1,939
-------- -------- -------- -------- -------- --------
Income, as adjusted................... $221,637 $(31,988) $189,649 $174,200 $ (5,100) $358,749
======== ======== ======== ======== ======== ========
Fixed charges:
Interest, net of capitalized
portion............................. $ 35,006 $ - $ 35,006 $ 79,700 $ 51,100 $165,806
Capitalized interest.................. 2,225 - 2,225 1,500 - 3,725
Portion of rents representative
of interest......................... 13,014 (188) 12,826 8,900 - 21,726
-------- -------- -------- -------- -------- --------
Total fixed charges................... $ 50,245 $ (188) $ 50,057 $ 90,100 $ 51,100 $191,257
======== ======== ======== ======== ======== ========
Ratio of earnings to fixed charges: 4.4X 3.8X 1.9X 1.9X
EXHIBIT 12.2
NATIONAL MEDICAL ENTERPRISES, INC. AND SUBSIDIARIES
STATEMENT RE: COMPUTATION OF RATIO OF PRO FORMA EARNINGS TO FIXED CHARGES
Historical Historical
NME AMH
Year Ended Year Ended Pro
May 31, NME NME August 31, AMH AMH Forma Pro Forma
1994 Adjustments As Adjusted 1994 Adjustments As Adjusted Adjustments Combined
---------- ----------- ----------- ------------ ----------- ----------- ----------- ---------
Income from continuing
operations before income taxes...... $359,901 $(35,300) $324,601 $235,100 $(69,300) $165,800 $(112,900) $377,501
Less: Equity in Earnings of
Unconsolidated Affiliates........... (23,846) (500) (24,346) - - - - (24,346)
Add:
Cash dividends received from
unconsolidated affiliates......... 178 - 178 - - - - 178
Portion of rents representative
of interest....................... 30,728 (6,500) 24,228 16,300 - 16,300 - 40,528
Interest, net of capitalized
portion........................... 70,037 (5,000) 65,037 157,200 - 157,200 102,200 324,437
Amortization of previously
capitalized interest.............. 3,784 - 3,784 - - - - 3,784
-------- -------- -------- -------- -------- -------- --------- --------
Income, as adjusted................... $440,782 $(47,300) $393,482 $408,600 $(69,300) $339,300 $ (10,700) $722,082
======== ======== ======== ======== ======== ======== ========= ========
Fixed charges:
Interest, net of capitalized
portion............................. $ 70,037 $ (5,000) $ 65,037 $154,500 $ - $154,500 $ 102,200 $324,437
Capitalized interest.................. 3,749 - 3,749 3,500 - 3,500 - 7,249
Portion of rents representative
of interest......................... 30,728 (6,500) 24,228 16,300 - 16,300 - 40,528
-------- -------- -------- -------- -------- -------- --------- --------
Total fixed charges................... $104,514 $(11,500) $ 93,014 $174,300 $ - $174,300 $ 102,200 $372,214
======== ======== ======== ======== ======== ======== ========= ========
Ratio of earnings to fixed charges: 4.2X 4.2X 2.3X 1.9X 1.9X