EXHIBIT 12.1 REGENCY HEALTH SERVICES, INC. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (DOLLARS IN THOUSANDS) PRO FORMA PRO FORMA YEAR ENDED DECEMBER 31, SIX MONTHS ENDED, ---------------------------------------------------------------------- ---------------------------------- 1991 1992 1993 1994 1995 1995 1995 1996 1996 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Interest expense $ 8,855 $ 5,575 $ 5,941 $ 7,844 $ 9,676 $ 16,576 $ 3,835 $ 8,346 $ 9,860 Amortization of financing costs 221 134 264 572 636 648 293 468 474 Retal expense deemed representative of the interest component of rental expense * Assume 33% 3,518 4,569 4,515 5,185 5,589 9,667 2,786 3,897 4,075 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Total fixed charges $ 12,594 $ 10,278 $ 10,720 $ 13,601 $ 15,901 $ 26,891 $ 6,914 $ 12,711 $ 14,409 ========== ========== ========== ========== ========== ========== ========== ========== ========== Pre tax income $ 5,165 $ 15,250 $ 19,263 $ 1,193 $ 11,770 $ 16,231 $ 7,850 $ 10,000 $ 8,086 Fixed charges 12,594 10,278 10,720 13,601 15,901 26,891 6,914 12,711 14,409 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- $ 17,759 $ 25,528 $ 29,983 $ 14,794 $ 27,671 $ 43,122 $ 14,764 $ 22,711 $ 22,615 ========== ========== ========== ========== ========== ========== ========== ========== ========== Earnings to fixed charges 1.41x 2.48x 2.80x 1.09x 1.74x 1.60x 2.14x 1.79x 1.56x ========== ========== ========== ========== ========== ========== ========== ========== ==========