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EXHIBIT 12.1
BEVERLY ENTERPRISES, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN THOUSANDS)
THREE MONTHS ENDED
YEARS ENDED DECEMBER 31, MARCH 31,
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2000 1999 1998 1997 1996 1995 2001 2000
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Income (loss) before provision for (benefit from)
income taxes, extraordinary charge and
cumulative effect of change in accounting for
income taxes.................................. $(76,764) $(213,726) $(50,882) $108,506 $125,507 $ (6,154) $(95,045) $10,098
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Add fixed charges:
Interest expense (including capitalized
interest).................................... 79,771 71,324 64,967 81,702 89,911 83,294 18,803 19,615
Interest factor in rent expense............... 37,913 38,147 37,541 37,849 33,572 46,740 9,342 9,470
Amortization of debt issue costs.............. 2,571 2,909 2,336 3,163 3,210 4,379 666 624
Amortization of debt discounts................ 0 0 0 39 101 144 0 0
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Total fixed charges............................ 120,255 112,380 104,844 122,753 126,794 134,557 28,811 29,709
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Less capitalized interest...................... (2,326) (1,655) (1,365) (2,191) (2,111) (3,572) (359) (621)
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Total earnings................................. $ 41,165 $(103,001) $ 52,597 $229,068 $250,190 $124,831 $(66,593) $39,186
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Ratio of earnings to fixed charges............. (a) (a) (a) 1.87 1.97 (a) (a) 1.32
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(a) Earnings were inadequate to cover fixed charges by $79,090,000,
$215,381,000, $52,247,000 and $9,726,000 for the years ended December 31, 2000,
1999, 1998 and 1995, respectively and $95,404,000 for the three-months ended
March 31, 2001.