EXHIBIT 12.2
NATIONAL MEDICAL ENTERPRISES, INC. AND SUBSIDIARIES
STATEMENT RE: COMPUTATION OF RATIO OF PRO FORMA EARNINGS TO FIXED CHARGES
For the three months ended August 31, 1994
Historical NME NME Historical Pro Forma Pro Forma
NME Adjustments As Adjusted AMH Adjustments Combined
---------- ----------- ----------- ---------- ----------- -----------
Income from continuing
operations before income taxes...... $107,028 $(31,900) $ 75,128 $ 45,900 $(27,900) $ 93,128
Less: Equity in Earnings of
Unconsolidated Affiliates........... 6,300 (100) 6,200 - - 6,200
Add:
Cash dividends received from
unconsolidated affiliates......... 894 - 894 - - 894
Portion of rents representative
of interest....................... 6,668 (188) 6,480 4,400 - 10,880
Interest, net of capitalized
portion........................... 17,660 - 17,660 39,200 25,400 82,260
Amortization of previously
capitalized interest.............. 946 - 946 - - 946
-------- -------- -------- -------- -------- --------
Income, as adjusted................... 126,896 (31,988) 94,908 89,500 (2,500) 181,908
======== ======== ======== ======== ======== ========
Fixed charges:
Interest, net of capitalized
portion............................. 17,660 - 17,660 39,200 25,400 82,260
Capitalized interest.................. 1,129 - 1,129 1,100 - 2,229
Portion of rents representative
of interest......................... 6,668 (188) 6,480 4,400 - 10,880
-------- -------- -------- -------- -------- --------
Total fixed charges................... $ 25,457 $ (188) $ 25,269 $ 44,700 $ 25,400 $ 95,369
======== ======== ======== ======== ======== ========
Ratio of earnings to fixed charges: 5.0X 3.8X 2.0X 1.9X
EXHIBIT 12.2
NATIONAL MEDICAL ENTERPRISES, INC. AND SUBSIDIARIES
STATEMENT RE: COMPUTATION OF RATIO OF PRO FORMA EARNINGS TO FIXED CHARGES
For the three months ended August 31, 1993
HISTORICAL NME NME HISTORICAL PRO FORMA PRO FORMA
NME ADJUSTMENTS AS ADJUSTED AMH ADJUSTMENTS COMBINED
---------- ----------- ----------- ---------- ----------- ---------
(Dollars in Thousands)
Income from continuing operations before
income taxes............................. $ 90,728 $(33,700) $57,028 $38,500 $(28,600) $ 66,928
Less: Equity in Earnings of
Unconsolidated Affiliates................ 3,500 - 3,500 - - 3,500
Add:
Cash dividends received from
unconsolidated affiliates.............. 178 178 178
Portion of rents representative of
interest............................... 8,029 (2,638) 5,391 3,400 8,791
Interest, net of capitalized portion..... 18,406 (1,900) 16,506 33,800 25,400 75,706
Amortization of previously capitalized
interest............................... 899 - 899 - - 899
-------- -------- ------- -------- --------- --------
Income, as adjusted......................... 114,740 (38,238) 76,502 75,700 (3,200) 149,002
======== ======== ======= ======= ======== ========
Fixed charges:
Interest, net of capitalized portion........ 18,406 (1,900) 16,506 33,800 25,400 75,706
Capitalized interest........................ 801 801 500 1,301
Portion of rents representative of interest. 8,029 (2,638) 5,391 3,400 - 8,791
-------- -------- ------- -------- --------- --------
Total fixed charges......................... $ 27,236 $ (4,538) $22,698 $37,700 $ 25,400 $ 85,798
======== ======== ======= ======= ======== ========
Ratio of earnings to fixed charges:......... 4.2x 3.4x 2.0x 1.7x
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 $(112,700) $377,701
Less: Equity in Earnings of
Unconsolidated Affiliates........... 23,800 500 24,300 - - - - 24,300
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) 65,037 154,500 - 154,500 101,400 320,937
Amortization of previously
capitalized interest.............. 3,784 - 3,784 - - - - 3,784
-------- -------- -------- -------- -------- -------- --------- --------
Income, as adjusted................... 440,828 (47,300) 393,528 405,900 (69,300) 336,600 (11,300) 718,828
======== ======== ======== ======== ======== ======== ========= ========
Fixed charges:
Interest, net of capitalized
portion............................. 70,037 (5,000) 65,037 154,500 - 154,500 101,400 320,937
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 $ 101,400 $368,714
======== ======== ======== ======== ======== ======== ========= ========
Ratio of earnings to fixed charges: 4.2X 4.2X 2.3X 1.9X 1.9X