EXHIBIT 12
Computation of Ratio of Earnings to Fixed Charges
Omnicare, Inc. and Subsidiary Companies
(in thousands, except ratio)
For the years ended December 31,
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2004 2003 2002 2001 2000
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Income before Income Taxes $375,199 $310,449 $203,051 $119,785 $ 77,523
Add Fixed Charges:
Interest Expense 65,821 73,345 52,811 52,724 52,974
Amortization of Debt Expense 4,600 4,200 4,000 3,600 2,100
Write-off of Debt Issuance Costs(1) -- 3,755 -- -- --
Interest Portion of Rent Expense 16,000 12,500 10,600 9,033 9,300
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Adjusted Income $461,620 $404,249 $270,462 $185,142 $141,897
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Fixed Charges:
Interest Expense $ 65,821 $ 73,345 $ 52,811 $ 52,724 $ 52,974
Amortization of Debt Expense 4,600 4,200 4,000 3,600 2,100
Write-off of Debt Issuance Costs(1) -- 3,755 -- -- --
Interest Portion of Rent Expense 16,000 12,500 10,600 9,033 9,300
-------- -------- -------- -------- --------
Fixed Charges $ 86,421 $ 93,800 $ 67,411 $ 65,357 $ 64,374
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Ratio of Earnings to Fixed Charges(2) 5.3x 4.3x 4.0x 2.8x 2.2x
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(1) The year ended December 31, 2003 includes the write-off of unamortized debt
issuance costs relating to the Company's redemption of its 5.0% convertible
subordinated debentures. See Note 7 of the Notes to Consolidated Financial
Statements for further discussion.
(2) The ratio of earnings to fixed charges has been computed by adding income
before taxes and fixed charges to derive adjusted income, and dividing
adjusted income by fixed charges. Fixed charges consist of interest expense
on debt (including the amortization of debt expense) and one-third (the
proportion deemed representative of the interest portion) of rent expense.