Attached files

file filename
EX-21 - SUBSIDIARIES OF CRC HEALTH CORPORATION - CRC Health CORPdex21.htm
EX-31.2 - RULE 13A-14(A)/15D-14(A) CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER - CRC Health CORPdex312.htm
EX-4.1K - TENTH SUPPLEMENTAL INDENTURE - CRC Health CORPdex41k.htm
EX-32.1 - SECTION 1350 CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER - CRC Health CORPdex321.htm
EX-32.2 - SECTION 1350 CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER - CRC Health CORPdex322.htm
EX-10.2K - FORM OF SUPPLEMENT NO. 11 - CRC Health CORPdex102k.htm
EX-10.3K - SUPPLEMENT NO. 11 - CRC Health CORPdex103k.htm
10-K - FORM 10-K - CRC Health CORPd10k.htm
EX-31.1 - RULE 13A-14(A)/15D-14(A) CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER - CRC Health CORPdex311.htm

Exhibit 12

CRC Health Corporation

Ratio of Earnings to Fixed Charges

(In thousands, except ratios)

 

    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     (Predecessor     (Predecessor     (Predecessor

Earnings (loss) from operations:

             

Income (loss) from operations before income taxes

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

Add: Fixed Charges

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

Earnings, as adjusted

  $ 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

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

Interest portion of rent expense

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

Total fixed charges

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

Ratio of earnings to fixed charges (1)

    0.53        -1.23        1.06        1.13        -16.41        2.41        2.18   

Ratio of earnings to fixed charges (1)

    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 $27.6 million in 2009, $159.2 million for the fiscal year ended December 31, 2008, $51.4 million for one month ended January 31, 2006, respectively.