EX-12 4 a50809562ex12.htm EXHIBIT 12 a50809562ex12.htm
EXHIBIT 12
 
 
CHEMED CORPORATION
      
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
      
(in thousands, except ratios)
      
                                           
   
2009
      
2010
      
2011
      
2012
      
2013
      
                                           
Pretax income from continuing operations
   $ 120,620       $ 133,831       $ 140,556       $ 145,819       $ 123,829      
                                                     
Additions:
                                                    
     Fixed charges
     23,018         24,230         26,656         28,021         28,032      
     Amortization of capitalized interest
     5         331         438         435         435      
                                                     
Deductions:
                                                    
     Capitalized interest
     (258 )       -         -         -         -      
 
                                                    
          Adjusted income
   $ 143,385       $ 158,392       $ 167,650       $ 174,275       $ 152,296      
                                                     
Fixed Charges:
                                                    
     Interest expense
   $ 11,599       $ 11,959       $ 13,888       $ 14,723       $ 15,035      
     Capitalized interest
     258         -         -         -         -      
     Interest component of rental expense (b)
     11,161         12,271         12,768         13,298         12,997      
 
                                                    
          Fixed charges
   $ 23,018       $ 24,230       $ 26,656       $ 28,021       $ 28,032      
                                                     
Ratio of earnings to fixed charges (a)
     6.2   x      6.5   x      6.3   x      6.2   x      5.4   x   
                                                     
Additional earnings needed to achieve 1:1 ratio coverage
  
n.a.
      
n.a.
      
n.a.
      
n.a.
      
n.a.
      
 
(a) For purposes of computing the ratio of earnings to fixed charges, pretax income from continuing operations has been added to fixed charges and adjusted for capitalized interest to derive adjusted income.  Fixed charges consist of interest expense on debt (including the amortization of deferred financing costs), capitalized interest, prepayment penalties on the early extinguishment of debt and one-third (the proportion deemed representative of the interest component) of rental expense.  Fixed charge amounts include interest from both continuing and discontinued operations.
  
   
(b) The amounts shown above for interest component of rental expense for 2009, 2010, 2011 and 2012 increased by $12.5 million, $15.3 million, $16.3 and $16.0 million, respectively, from the prior year presentation due to certain in-patient unit leases being inadverently omitted.  All years are present consistently.  This omission did not affect our results of operations, financial position or cash flows.
  
 
 
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