CRC Health CORP - FORM 10-K - EX-12 - STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES - March 30, 2011

Attached files

file filename
10-K - FORM 10-K - CRC Health CORPd10k.htm
EX-10.1F - SECOND AMENDED AND RESTATED CREDIT AGREEMENT - CRC Health CORPdex101f.htm
EX-10.1E - SECOND AMENDMENT AGREEMENT - CRC Health CORPdex101e.htm
EX-10.20 - EMPLOYMENT AGREEMENT - CRC Health CORPdex1020.htm
EX-21 - SUBSIDIARIES OF CRC HEALTH CORPORATION - CRC Health CORPdex21.htm
EX-31.1 - RULE 13A-14(A)/15D-14(A) CERTIFICATION OF PEO - CRC Health CORPdex311.htm
EX-32.1 - SECTION 1350 CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER - CRC Health CORPdex321.htm
EX-31.2 - RULE 13A-14(A)/15D-14(A) CERTIFICATION OF PFO AND PAO - CRC Health CORPdex312.htm
EX-32.2 - SECTION 1350 CERTIFICATION OF PFO AND PAO - CRC Health CORPdex322.htm
EX-10.21 - FORM OF 2010 SENIOR EXECUTIVE OPTION AGREEMENT - CRC Health CORPdex1021.htm

Exhibit 12

CRC Health Corporation

Ratio of Earnings to Fixed Charges

(In thousands, except ratios)

 

     Year Ended
2010		     Year Ended
2009		     Year
Ended
2008		     Year Ended
2007		     Eleven Months
Ended
December 31,
2006		     One Month
Ended
January 31,
2006		     Three Months
Ended
March  31,
2005		     Years Ended
December 31,
2005		  
     (Successor  )      (Successor  )      (Successor  )      (Successor  )      (Successor  )      (Predecessor  )      (Predecessor  )      (Predecessor  ) 

Earnings (loss) from operations:

                 

Income (loss) from operations before income taxes

    $ (44,693 )    $ (27,606 )    $ (159,190 )    $ 4,796      $ 6,495      $ (51,437 )    $ 6,401      $ 28,917   

Add: Fixed Charges

      58,484        59,317        71,416        75,715        48,293        2,955        4,525        24,464   
                                                                

Earnings, as adjusted

    $ 13,791      $ 31,711      $ (87,774 )    $ 80,511      $ 54,788      $ (48,482 )    $ 10,926      $ 53,381   

Computation of fixed charges:

                 

Total interest expense, including interest expensed and amortization of capitalized financing costs and debt discount

    $ 42,780      $ 44,166      $ 54,122      $ 60,261      $ 41,456      $ 2,509      $ 3,489      $ 19,817   

Interest portion of rent expense

      15,704        15,151        17,294        15,454        6,837        446        1,036        4,647   
                                                                

Total fixed charges

    $ 58,484      $ 59,317      $ 71,416      $ 75,715      $ 48,293      $ 2,955      $ 4,525      $ 24,464   

Ratio of earnings to fixed charges (1)

      0.24        0.53        -1.23        1.06        1.13        -16.41        2.41        2.18   

Ratio of earnings to fixed charges (1)

      0.24x        0.53x        —          1.06x        1.13x        —          2.41x        2.18x   

 

(1) The ratio of earnings to fixed charges is completed by dividing earnings by fixed charges. “Earnings” consist of earnings before income taxes plus fixed charges. Fixed charges include (i) interest expense on borrowings and amortization of capitalized financing costs and debt discount and (ii) a reasonable approximation of the interest factor deemed to be included in rental expense. Earnings, as adjusted were not sufficient to cover fixed charges by approximately $44.7 million for the fiscal year ended December 31, 2010, $27.6 million for the fiscal year ended December 31, 2009, $159.2 million for the fiscal year ended December 31, 2008, $51.4 million for one month ended January 31, 2006, respectively.

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