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BEVERLY ENTERPRISES, INC.
EXHIBIT 12.1
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
YEARS ENDED DECEMBER 31, SEPTEMBER 30,
------------------------------------------------------------- ----------------------
1999 1998 1997 1996 1995 2000 1999
--------- --------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Income (loss) before provision for
(benefit from) income taxes,
extraordinary charge and
cumulative effect of change
in accounting for income taxes $(213,726) $ (50,882) $ 108,506 $ 125,507 $ (6,154) $ (9,732) $(161,989)
========= ========= ========= ========= ========= ========= =========
Add fixed charges:
Interest expense (including
capitalized interest) ........ 71,324 64,967 81,702 89,911 83,294 60,094 52,733
Interest factor in rent expense 38,147 37,541 37,849 33,572 46,740 28,748 28,319
Amortization of debt issue costs 2,909 2,336 3,163 3,210 4,379 1,910 2,562
Amortization of debt discounts 0 0 39 101 144 0 0
--------- --------- --------- --------- --------- --------- ---------
Total fixed charges .............. 112,380 104,844 122,753 126,794 134,557 90,752 83,614
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Less capitalized interest ........ (1,655) (1,365) (2,191) (2,111) (3,572) (2,062) (1,266)
--------- --------- --------- --------- --------- --------- ---------
Total earnings ................... $(103,001) $ 52,597 $ 229,068 $ 250,190 $ 124,831 $ 78,958 $ (79,641)
========= ========= ========= ========= ========= ========= =========
Ratio of earnings to fixed charges (1) (1) 1.87 1.97 (1) (1) (1)
========= ========= ========= ========= ========= ========= =========
</TABLE>
(1) Earnings were inadequate to cover fixed charges by $11,794,000 and
$163,255,000 for the nine months ended September 30, 2000 and 1999,
respectively, and $215,381,000, $52,247,000 and $9,726,000 for the years ended
December 31, 1999, 1998 and 1995, respectively.
