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EXHIBIT 12
MATRIA HEALTHCARE, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Amounts in thousands, except ratio data)
SIX MONTHS ENDED
YEAR ENDED DECEMBER 31, JUNE 30,
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1996 1997 1998 1999 2000 2000 2001
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(Unaudited)
Earnings Computation:
Earnings (loss) from continuing operations before
income taxes $(51,121) $(20,902) $(100,406) $27,366 $ 22,794 $ 14,636 $ 8,476
Fixed charges 2,086 2,344 3,250 10,672 10,824 5,656 4,372
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Total earnings $(49,035) $(18,558) $ (97,156) $38,038 $ 33,618 $ 20,292 $ 12,848
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Fixed Charges Computation:
Interest expense $ 353 $ 311 $ 1,083 $ 8,185 $ 8,600 $ 4,381 $ 3,392
Interest component of rent expense 1,733 2,033 2,167 2,487 2,224 1,275 980
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Total fixed charges $ 2,086 $ 2,344 $ 3,250 $10,672 $ 10,824 $ 5,656 $ 4,372
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Ratio of earnings to fixed charges (a) (23.5) (7.9) (29.9) 3.6 3.1 3.6 2.9
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Pro forma ratio of earnings to fixed charges (b):
Earnings Computation:
Pro forma earnings from continuing operations before
income taxes $ 20,177 $ 13,177 $ 7,026
Pro forma fixed charges 13,441 7,115 5,822
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Total pro forma earnings $ 33,618 $ 20,292 $ 12,848
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Fixed Charges Computation:
Pro forma interest expense $ 11,217 $ 5,840 $ 4,842
Interest component of rent expense 2,224 1,275 980
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Total pro forma fixed charges $ 13,441 $ 7,115 $ 5,822
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Pro forma ratio of earnings to fixed charges 2.5 2.9 2.2
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(a) The dollar amount of the deficiency, based on a one-to-one coverage
ratio, was $51.1 million, $20.9 million and $100.4 million for the
years ended December 31, 1996, 1997 and 1998, respectively.
(b) The ratio of earnings to fixed charges giving effect to this offering
to repay outstanding indebtedness and to repurchase certain debt
securities and the application of the net proceeds from the offering
for that purpose, as if these transactions occurred on the first day of
the period.