Exhibit 12.1.1
Manor Care, Inc.
Computation of Ratio of Earnings to Fixed Charges
(In thousands, except ratios)
SIX MONTHS ENDED JUNE 30, 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
operations before income
taxes and minority interests .... $ 82,115 $ 115,721 $ 212,684 $ 129,992 $ 61,669 $(102,396) $(24,565)
Less:
Equity in earnings of
affiliates, excluding affiliate
with guaranteed debt ......... (3,140) (1,873) (4,761) (4,543) (2,016) (2,276) (5,376)
Add:
Dividends received from
equity affiliate .............. 3,088 2,198 3,026 11,574 6,000 -- --
Fixed charges deducted from
earnings (see below) .......... 25,713 25,253 51,173 64,751 75,511 67,838 62,613
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Earnings available to cover
fixed charges ................... $ 107,776 $ 141,299 $ 262,122 $ 201,774 $ 141,164 $ (36,834) $ 32,672
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FIXED CHARGES:
Interest expense, including
amounts in operating expense .... $ 20,783 $ 20,283 $ 41,395 $ 55,458 $ 66,460 $ 60,646 $ 55,340
Interest within rent expense ..... 4,930 4,970 9,778 9,293 9,051 7,192 7,273
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Fixed charges deducted from
earnings ........................ 25,713 25,253 51,173 64,751 75,511 67,838 62,613
Interest expense on
guaranteed debt of affiliate .... -- -- -- 2,272 4,309 922 --
Interest capitalized ............. 257 381 721 1,933 4,457 3,235 8,623
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Fixed charges .................... $ 25,970 $ 25,634 $ 51,894 $ 68,956 $ 84,277 $ 71,995 $ 71,236
========= ========= ========= ========= ========= ========= ========
RATIO OF EARNINGS TO FIXED
CHARGES (1) ..................... 4.2x 5.5x 5.1x 2.9x 1.7x -- --
========= ========= ========= ========= =========
(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.