Exhibit 12.1
Manor Care, Inc.
Computation of Ratio of Earnings to Fixed Charges
(In thousands, except ratios)
3 MONTHS ENDED MARCH 31, YEARS ENDED DECEMBER 31,
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2003 2002 2002 2001 2000 1999 1998
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EARNINGS AVAILABLE TO COVER FIXED
CHARGES:
Income (loss) from continuing $50,206 $54,418 $212,684 $129,992 $61,669 $(102,396) $(24,565)
operations before income taxes and
minority interests............
Less:
Equity in earnings of affiliates, (1,541) (736) (4,761) (4,543) (2,016) (2,276) (5,376)
excluding affiliate with
guaranteed debt...............
Add:
Dividends received from equity
affiliate...... 1,971 2,182 3,026 11,574 6,000 -- --
Fixed charges deducted from
earnings (see below)............. 11,968 12,454 51,173 64,751 75,511 67,838 62,613
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Earnings available to cover fixed
charges............................... $62,604 $68,318 $262,122 $201,774 $141,164 $(36,834) $32,672
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FIXED CHARGES:
Interest expense, including amounts
in operating expense............... $ 9,463 $9,949 $41,395 $55,458 $66,460 $60,646 $55,340
Interest within rent expense......... 2,505 2,505 9,778 9,293 9,051 7,192 7,273
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Fixed charges deducted from 11,968 12,454 51,173 64,751 75,511 67,838 62,613
earnings..........................
Interest expense on guaranteed debt -- -- -- 2,272 4,309 922 --
of affiliate.....................
Interest capitalized................... 182 287 721 1,933 4,457 3,235 8,623
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Fixed charges........................ $12,150 $12,741 $51,894 $68,956 $84,277 $71,995 $71,236
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RATIO OF EARNINGS TO FIXED
CHARGES (1).......................... 5.2x 5.4x 5.1x 2.9x 1.7x -- --
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(1)We do not show a ratio for 1998 and 1999 because earnings were insufficient
to cover fixed charges by $38.6 million in 1998 and $108.8 million in 1999.