EXHIBIT 12
NATIONAL MEDICAL ENTERPRISES, INC. AND SUBSIDIARIES
STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
PRO FORMA AS REPORTED FOR THE
SIX MONTHS ENDED PRO FORMA SIX MONTHS ENDED
----------------------- YEAR ENDED NOVEMBER 30,
NOVEMBER NOVEMBER MAY 31, --------------------
30, 1994 30, 1993 1994 1994 1993
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EARNINGS FROM
CONTINUING OPERATIONS
Income before income taxes.............. $180,746 $149,408 $ 377,501 $183,246 $193,908
Less:
Equity in earnings of unconsolidated
affiliates........................... 12,362 14,707 24,300 12,462 14,707
Add:
Cash dividends received............... 894 178 178 894 178
Portion of rents representative
of interest.......................... 21,726 18,921 40,528 13,014 16,582
Interest, net of capitalized
portion.............................. 165,806 167,859 324,437 35,006 37,759
Amortization of previously capitalized
interest............................. 1,939 1,892 3,784 1,939 1,892
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Earnings, as adjusted................... $358,749 $323,551 $ 722,128 $221,637 $235,612
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FIXED CHARGES:
Interest, net of capitalized portion.... $165,806 $167,859 $ 324,437 $ 35,006 $37,759
Capitalized interest.................... 3,725 2,776 7,249 2,225 1,676
Portion of rents representative
of interest............................ 21,726 18,921 40,528 13,014 16,582
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Total fixed charges................. $191,257 $189,556 $ 372,214 $ 50,245 $56,017
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RATIO OF EARNINGS TO
FIXED CHARGES.......................... 1.9x 1.7x 1.9x 4.4x 4.2x
AS REPORTED FOR THE YEARS ENDED MAY 31,
------------------------------------------------
1994 1993 1992 1991 1990
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EARNINGS FROM
CONTINUING OPERATIONS
Income before income taxes.............. $359,901 $418,644 $359,199 $245,142 $200,486
Less:
Equity in earnings of unconsolidated
affiliates........................... 23,846 12,489 6,673 5,338 2,902
Add:
Cash dividends received............... 178
Portion of rents representative
of interest.......................... 30,728 35,822 35,477 31,803 38,257
Interest, net of capitalized
portion.............................. 70,037 75,343 89,376 123,852 130,882
Amortization of previously capitalized
interest............................. 3,784 3,595 3,368 2,967 2,538
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Earnings, as adjusted................... $440,782 $520,915 $480,747 $398,426 $369,261
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FIXED CHARGES:
Interest, net of capitalized portion.... $ 70,037 $ 75,343 $ 89,376 $123,852 $130,882
Capitalized interest.................... 3,749 9,028 11,021 16,890 19,492
Portion of rents representative
of interest............................ 30,728 35,822 35,477 31,803 38,257
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Total fixed charges................. $104,514 $120,193 $135,874 $172,545 $188,631
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RATIO OF EARNINGS TO
FIXED CHARGES.......................... 4.2x 4.3x 3.5x 2.3x 2.0x