EX-12.1 3 l27603bexv12w1.htm EX-12.1 EX-12.1
 

Exhibit 12.1
CHEMED CORPORATION AND SUBSIDIARY COMPANIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(in thousands, except ratios)
                                                         
                                            Six Months Ended
    Year Ended December 31,     June 30,
                                                       
    2002     2003     2004     2005     2006     2006     2007  
 
                                          
Pretax income from continuing operations before equity in earnings/(loss) of affiliate
   $ 17,140     $ 16,446     $ 36,936     $ 54,656     $ 90,284     $ 41,893     $ 41,755  
Additions:
                                                      
Fixed charges
     5,621       4,800       25,267       26,767       23,625       12,786       10,430  
Amortization of capitalized interest
     —       —       1       2       —       —       —  
Deductions:
                                                        
Capitalized interest
     —       —       (72 )     (380 )     (751 )     (325 )     (463 )
 
                                          
Adjusted earnings
   $ 22,761     $ 21,246     $ 62,132     $ 81,045     $ 113,158     $ 54,354     $ 51,722  
 
                                          
Fixed charges:
                                                      
Interest expense
   $ 4,007     $ 3,211     $ 21,167     $ 21,264     $ 17,468     $ 9,645     $ 7,142  
Capitalized interest
     —       —       72       380       751       325       463  
Interest component of rent expense
     1,614       1,589       4,028       5,123       5,406       2,816       2,825  
 
                                          
Total Fixed Charges
   $ 5,621     $ 4,800     $ 25,267     $ 26,767     $ 23,625     $ 12,786     $ 10,430  
 
                                          
 
                                                      
Ratio of Earnings to Fixed Charges (a)
     4.0       4.4       2.5       3.0       4.8       4.3       5.0  
 
                                          
 
(a)   For purposes of computing the above ratios: (1) earnings consist of pretax income from continuing operations before the equity method earnings or losses plus fixed charges and amortization of capitalized interest minus interest capitalized; and (2) fixed charges consist of interest on debt expensed and capitalized, amortization of deferred debt issuance costs, and that portion of rental expense representative of interest.
 

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