EXHIBIT 12
CHEMED CORPORATION
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
(IN THOUSANDS, EXCEPT RATIOS)
For the Years Ended December 31,
-------------------------------------------------------------- For the Three Months Ended
2003 March 31, 2004
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1999 2000 2001 2002 Historical Pro Forma (a) Historical Pro Forma (a)
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Earnings
Income/(loss) from continuing
operations
before income taxes $26,150 $29,986 $(15,727) $(2,403) $ 328 $ 2,139 $(3,502) $(2,631)
Fixed charges 10,603 10,869 8,463 5,619 4,799 27,999 3,523 7,400
Amortization of deferred financing - - - - - 2,980 218 461
costs
Capitalized interest (927) (500) - - - - - -
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Earnings $35,826 $40,355 $(7,264) $ 3,216 $5,127 $ 33,118 $ 239 $ 5,230
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Fixed Charges:
Interest expense $ 7,680 $ 8,408 $ 6,536 $ 4,007 $3,211 $ 26,317 $ 2,905 $ 6,307
Amortization of deferred financing - - - - - (2,980) (218) (461)
costs
Interest component of rent expense 1,996 1,961 1,927 1,612 1,588 4,662 836 1,554
Capitalized interest 927 500 - - - - - -
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Fixed charges $10,603 $10,869 $8,463 $ 5,619 $4,799 $ 27,999 $ 3,523 $ 7,400
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Ratio of Earnings to Fixed Charges 3.4x 3.7x -(b) 0.6x(b) 1.1x 1.2x 0.1x (b) 0.7x (b)
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(a) Pro forma amounts assume the acquisition of Vitas and the related financing were completed on January 1 of the respective
periods.
(b) In the years ended December 13, 2001 and 2002, and the three months ended March 31, 2004 (historical and pro forma), our
earnings were insufficient to cover fixed charges by $15,727, $2,403, $3,284 and $2,170, respectively.