EXHIBIT 12
RESCARE, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(IN THOUSANDS, EXCEPT RATIO DATA)
Nine-months
Year Ended December 31 ended
--------------------------------------------------------- September
1996 1997 1998 1999 2000 30, 2001
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Earnings Computation:
Earnings from continuing operations before income taxes $ 16,740 $ 26,618 $ 38,416 $ 19,889 $ 24,823 $ 11,082
Fixed charges 6,211 10,604 22,074 27,764 31,166 21,989
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Total earnings $ 22,951 $ 37,222 $ 60,490 $ 47,653 $ 55,989 $ 33,071
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Fixed Charges Computation:
Interest expense $ 3,939 $ 6,600 $ 15,556 $ 19,925 $ 23,446 $ 15,588
Interest component of rent expense 2,272 4,004 6,518 7,839 7,720 6,401
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Total fixed charges $ 6,211 $ 10,604 $ 22,074 $ 27,764 $ 31,166 $ 21,989
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Ratio of earnings to fixed charges 3.7 3.5 2.7 1.7 1.8 1.5
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Pro forma ratio of earnings to fixed charges (a):
Earnings Computation:
Pro forma earnings from continuing operations before income taxes $ 22,931 $ 7,933
Pro forma fixed charges 33,058 25,138
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Total pro forma earnings $ 55,989 $ 33,071
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Fixed Charges Computation:
Pro forma interest expense $ 25,338 $ 18,737
Interest component of rent expense 7,720 6,401
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Total pro forma fixed charges $ 33,058 $ 25,138
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Pro forma ratio of earnings to fixed charges 1.7 1.3
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