SELECT MEDICAL HOLDINGS CORP - FORM 10-K - EX-12

file	filename
10-K - FORM 10-K - SELECT MEDICAL HOLDINGS CORP	w77708e10vk.htm
EX-23 - EX-23 - SELECT MEDICAL HOLDINGS CORP	w77708exv23.htm
EX-21.1 - EX-21.1 - SELECT MEDICAL HOLDINGS CORP	w77708exv21w1.htm
EX-31.1 - EX-31.1 - SELECT MEDICAL HOLDINGS CORP	w77708exv31w1.htm
EX-32.1 - EX-32.1 - SELECT MEDICAL HOLDINGS CORP	w77708exv32w1.htm
EX-31.2 - EX-31.2 - SELECT MEDICAL HOLDINGS CORP	w77708exv31w2.htm
EX-10.119 - EX-10.119 - SELECT MEDICAL HOLDINGS CORP	w77708exv10w119.htm

EXHIBIT 12

Select Medical Holdings Corporation
Ratio of Earnings to Fixed Charges
(in thousands)
(unaudited)


	Predecessor			Successor
	Period from			Period from
	January 1			February 25
	through			through
	February 24,			December 31,		For the Year Ended December 31,
	2005			2005		2006		2007		2008		2009
Pre-tax income (loss) from continuing operations before adjustments for non-controlling interests in consolidated subsidiaries or income or loss from equity investees	$	(160,237	)	$	120,367	$	127,336	$	55,666	$	51,897	$	116,404


Fixed charges:
Interest expense and amortization of debt discount and premium on all indebtedness		4,651			102,208		131,831		140,155		145,894		132,469

Capitalized interest		—			1,394		2,016		3,757		474		427

Interest related to discontinued operations		83			—		—		—		—		—

Rentals:
Buildings - 33% (A)		4,169			22,871		27,736		32,490		36,380		38,644

Office and other equipment - 33% (A)		1,771			9,054		11,337		11,023		9,580		9,309

Preferred stock dividend requirements of consolidated subsidiaries		—			40,272		34,632		36,374		53,970		29,273

Total fixed charges	$	10,674		$	175,799	$	207,552	$	223,799	$	246,299	$	210,121

Pre-tax income (loss) from continuing operations before adjustment for non-controlling interests in consolidated subsidiaries or income or loss from equity investees plus fixed charges, less preferred stock dividend requirements of consolidated subsidiaries less capitalized interest	$	(149,646	)	$	294,772	$	332,872	$	275,708	$	297,722	$	326,098


Ratio of earnings to fixed charges		(B	)		1.68		1.60		1.23		1.21		1.55

Select Medical Corporation
Ratio of Earnings to Fixed Charges
(in thousands)
(unaudited)


	Predecessor			Successor
	Period from			Period from
	January 1			February 25
	through			through
	February 24,			December 31,		For the Year Ended December 31,
	2005			2005		2006		2007		2008		2009

Pre-tax income (loss) from continuing operations before adjustments for non-controlling interests in consolidated subsidiaries or income or loss from equity investees	$	(160,237	)	$	140,749	$	163,245	$	85,997	$	84,100	$	152,037


Fixed charges:
Interest expense and amortization of debt discount and premium on all indebtedness		4,651			83,752		97,288		105,497		110,889		99,543

Capitalized interest		—			1,394		2,016		3,757		474		427

Interest related to discontinued operations		83			—		—		—		—		—

Rentals:
Buildings - 33% (A)		4,169			22,871		27,736		32,490		36,380		38,644

Office and other equipment - 33% (A)		1,771			9,054		11,337		11,023		9,580		9,309

Total fixed charges	$	10,674		$	117,071	$	138,377	$	152,767	$	157,323	$	147,922


Pre-tax income (loss) from continuing operations before adjustment for non-controlling interests in consolidated subsidiaries or income or loss from equity investees plus fixed charges, less preferred stock dividend requirements of consolidated subsidiaries, less capitalized interest	$	(149,646	)	$	256,426	$	299,606	$	235,007	$	240,949	$	299,532


Ratio of earnings to fixed charges		(B	)		2.19		2.17		1.54		1.53		2.02


(A)		The Company uses 33% to estimate the interest on its rentals. This percentage is a reasonable approximation of the interest factor.

(B)		In the predecessor period of January 1, 2005 to February 24, 2005 the ratio coverage was less than 1.1. The Company would have had to generate additional earnings of approximately $160.3 million to achieve a coverage ratio of 1:1.

SELECT MEDICAL HOLDINGS CORP - FORM 10-K - EX-12 - March 17, 2010