EX-12.1 3 dex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of ratio of earnings to fixed charges

EXHIBIT 12.1

 

Michael Foods, Inc.

 

Computation of ratio of earnings to fixed charges

 

For the Periods Ended

(in thousands)

 

 

    Company

    Predecessor

    Company

    Predecessor

    2001 Predecessor

 
   

Three months

ended

March 31,

2004


   

Three months

ended

March 31,

2003


   

One month

ended

December 31,

2003


   

Eleven months

ended

November 30,

2003


   

Year

ended

December 31,

2002


 

Nine months

ended

December 31,

2001


   

Three months

ended

March 31,

2001


   

Years ended

December 31,


 
                  2000

    1999

 

Earnings:

                                                                     

Income (loss) before income taxes

  $ 13,300     $ 9,609     $ (7,365 )   $ (29,547 )   $ 48,204   $ 21,815     $ (9,312 )   $ 73,600     $ 74,666  

Add:

                                                                     

Fixed charges

    11,380       12,403       5,103       43,530       52,355     46,045       3,692       15,315       14,514  

Amortization of capitalized interest

    143       143       48       524       572     429       143       572       572  

Subtract:

                                                                     

Interest capitalized

    (14 )     (32 )     —         (32 )     —       (196 )     —         (224 )     (1,054 )
   


 


 


 


 

 


 


 


 


Adjusted Earnings

  $ 24,809     $ 22,123     $ (2,214 )   $ 14,475     $ 101,131   $ 68,093     $ (5,477 )   $ 89,263     $ 88,698  
   


 


 


 


 

 


 


 


 


Fixed Charges:

                                                                     

Interest expensed and capitalized

  $ 10,418     $ 11,004     $ 4,782     $ 38,057     $ 46,737   $ 40,172     $ 3,292     $ 13,715     $ 12,972  

Interest portion of rentals

    452       452       151       1,657       1,400     1,155       375       1,500       1,442  

Amortization of capitalized debt expense

    510       947       170       3,816       4,218     2,359       25       100       100  
   


 


 


 


 

 


 


 


 


    $ 11,380     $ 12,403     $ 5,103     $ 43,530     $ 52,355   $ 43,686     $ 3,692     $ 15,315     $ 14,514  
   


 


 


 


 

 


 


 


 


Ratio of earnings to fixed charges (1)

    2.18       1.78       —         —         1.93     1.56       —         5.83       6.11  
   


 


 


 


 

 


 


 


 



(1) Due to the Company’s loss for the one month ended December 31, 2003, and the Predecessor’s loss for the eleven months ended November 30, 2003, and the 2001 Predecessor’s loss for the three months ended March 31, 2001, the ratio coverage in the respective periods was less the 1:1. The Company, Predecessor and the 2001 Predecessor needed to generate additional earnings of $7,317,000, $29,056,000 and $9,169,000 for the one month ended December 31, 2003, the eleven months ended November 30, 2003, and the three months ended March 31, 2001, respectively, to achieve a coverage ratio of 1:1.