EX-12 4 l41914exv12.htm EX-12 exv12
EXHIBIT 12
CHEMED CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(in thousands, except ratios)
                                         
    2006     2007     2008     2009     2010  
 
Pretax income from continuing operations
   $ 90,284     $ 98,161     $ 115,404     $ 120,620     $ 133,831  
 
Additions:
                                        
Fixed charges
     23,625       21,554       18,983       18,840       19,139  
Amortization of capitalized interest
     2       4       5       5       331  
 
Deductions:
                                        
Capitalized interest
     (751 )     (951 )     (659 )     (258 )     —  
 
                              
 
Adjusted income
   $ 113,160     $ 118,768     $ 133,733     $ 139,207     $ 153,301  
 
                              
Fixed Charges:
                                        
Interest expense
   $ 17,468     $ 14,921     $ 12,123     $ 11,599     $ 11,959  
Capitalized interest
     751       951       659       258       —  
Interest component of rental expense
     5,406       5,682       6,201       6,983       7,180  
 
                              
 
Fixed charges
   $ 23,625     $ 21,554     $ 18,983     $ 18,840     $ 19,139  
 
                              
 
Ratio of earnings to fixed charges (a)
     4.8 x      5.5 x      7.0 x      7.4 x      8.0 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.