Attached files
| file | filename |
|---|---|
| 10-K - FORM 10-K FYE 12/31/2009 - LifeCare Holdings, Inc. | d10k.htm |
| EX-31.2 - EXHIBIT 31.2 - LifeCare Holdings, Inc. | dex312.htm |
| EX-32.1 - EXHIBIT 32.1 - LifeCare Holdings, Inc. | dex321.htm |
| EX-32.2 - EXHIBIT 32.2 - LifeCare Holdings, Inc. | dex322.htm |
| EX-31.1 - EXHIBIT 31.1 - LifeCare Holdings, Inc. | dex311.htm |
| EX-10.35 - EXHIBIT 10.35 - LifeCare Holdings, Inc. | dex1035.htm |
Exhibit 12
LifeCare Holdings, Inc.
Ratio of Earnings to Fixed Charges
($ in Thousands)
| Predecessor Period (C) |
Successor Period |
Successor Periods | |||||||||||||||||||||||||
| Period from January 1 through August 10, 2005 |
Period from August 11 through December 31, 2005 |
Pro Forma Predecessor and Successor Combined Period from January 1 through December 31, 2005 |
|||||||||||||||||||||||||
| Year Ended December 31 | |||||||||||||||||||||||||||
| 2006 | 2007 | 2008 | 2009 | ||||||||||||||||||||||||
| Earnings adjusted for fixed charges: |
|||||||||||||||||||||||||||
| Pre-tax income (loss) |
$ | (18,327 | ) | $ | (71,144 | ) | $ | (49,706 | ) | $ | (37,119 | ) | $ | (60,705 | ) | $ | (19,670 | ) | $ | 3,748 | |||||||
| Add |
|||||||||||||||||||||||||||
| Fixed charges |
8,041 | 16,166 | 37,086 | 40,504 | 44,063 | 46,872 | 39,881 | ||||||||||||||||||||
| Less |
|||||||||||||||||||||||||||
| Preferred stock dividend requirements (A) |
(2,430 | ) | — | — | — | — | — | — | |||||||||||||||||||
| Pre-tax income (loss) before fixed charges and less preferred stock dividend requirements of consolidated subsidiaries |
$ | (12,716 | ) | $ | (54,978 | ) | $ | (12,620 | ) | $ | 3,385 | $ | (16,642 | ) | $ | 27,202 | $ | 43,629 | |||||||||
| Fixed charges: |
|||||||||||||||||||||||||||
| Interest expense |
$ | 1,918 | $ | 13,990 | $ | 31,217 | $ | 34,538 | $ | 36,914 | $ | 38,431 | $ | 31,456 | |||||||||||||
| Interest portion of rent expense |
3,693 | 2,176 | 5,869 | 5,966 | 7,149 | 8,441 | 8,425 | ||||||||||||||||||||
| Preferred stock dividend requirements (A) |
2,430 | — | — | — | — | — | — | ||||||||||||||||||||
| Total fixed charges |
$ | 8,041 | $ | 16,166 | $ | 37,086 | $ | 40,504 | $ | 44,063 | $ | 46,872 | $ | 39,881 | |||||||||||||
| Ratio of earnings to fixed charges |
(B | ) | (B | ) | (B | ) | (B | ) | (B | ) | (B | ) | 1.1 | ||||||||||||||
| (A) | The preferred stock dividend requirements of consolidated subsidiaries is included in fixed charges (i.e. the denominator of the ratio calculation) but excluded from the numerator of the ratio calculation because such amount was not deducted in arriving at the pre-tax income (loss) from continuing operations, as defined. The preferred stock obligations associated with these dividends were repaid in connection with the Transactions. |
| (B) | In the period from January 1 through August 10, 2005, the period from August 11 through December 31, 2005, the Pro Forma year ended December 31, 2005, and the years ended December 31, 2006 and 2007 the ratio coverage ratio was less than 1:1. The Company would have had to generate additional earnings as summarized below for each of these periods to have achieved a coverage ratio of 1:1. |
| (C) | The Company’s operations for periods prior to the Merger are referred to as the “Predecessor” periods, while the Company’s operations for periods following the Merger are referred to as the “Successor” periods. |
| Additional Earnings | |||
| Predecessor Periods |
|||
| Period from January 1 through August 10, 2005 |
$ | 20,757 | |
| Successor Period: |
|||
| Period from August 11 through December 31, 2005 |
71,144 | ||
| Pro Forma Period Twelve Months Ended December 31, 2005 |
49,706 | ||
| Year Ended December 31, 2006 |
37,119 | ||
| Year Ended December 31, 2007 |
60,705 | ||
| Year Ended December 31, 2008 |
$ | 19,670 | |
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