EX-12.1 5 dex121.htm STATEMENTS RE COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Statements re Computation of Ratio of Earnings to Fixed Charges

Exhibit 12.1

MICHAEL FOODS GROUP, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(In thousands, except ratios)

 

    Company     Predecessor  
    Pro Forma (a)     Historical     Pro Forma (a)     Historical     Historical  
    Three Months     Three Months     Fiscal Year     Six Months     Six Months                          
    Ended     Ended     Ended     Ended     Ended     Fiscal Year Ended,  
    April 2,
2011		     April 2,
2011		     January 1,
2011		     January 1,
2011		     June 26,
2010		     January 2,
2010		     January 3,
2009		     December 29,
2007		     December 30,
2006		  

Earnings:

                    
 

Earnings (loss) before income taxes and equity in losses of unconsolidated subsidiary

   $ 9,053      $ (561 )    $ 33,216      $ 3,256      $ (47,989 )    $ 92,862      $ 53,916      $ 30,320      $ 26,653   

Add:

                    

Fixed charges

     24,172        25,714        94,364        53,987        32,172        62,002        58,591        68,456        71,715   

Subtract:

                    

Interest capitalized

     0        0        (219 )      (86 )       (133 )      (468 )      0        (93 )      (803 ) 
                                                                       

Adjusted Earnings

   $ 33,225      $ 25,133      $ 127,361      $ 57,157      $ (15,950 )    $ 154,396      $ 112,507      $ 98,683      $ 97,565   
                                                                       

Fixed Charges:

                    

Interest expensed

   $ 20,703      $ 22,603      $ 80,716      $ 47,289      $ 27,799      $ 53,728      $ 52,708      $ 62,046      $ 65,332   

Interest portion of rentals

     500        500        1,975        1,001        975        1,916        1,847        1,761        1,427   
 

Amortization of financing costs

     2,969        2,611        11,673        5,697        3,398        6,358        4,036        4,649        4,956   
                                                                       
  $ 24,172      $ 25,714      $ 94,364      $ 53,987      $ 32,172      $ 62,002      $ 58,591      $ 68,456      $ 71,715   
                                                                       

Ratio of earnings to fixed charges

     1.37        0.98        1.35        1.06        (b )      2.49        1.92        1.44        1.36   
                                                                       

 

(a) The pro forma ratio of earnings to fixed charges is calculated as if the June 29, 2010 business combination and related financings, including the $430 million senior notes offered under the indenture and the secured loan agreement refinanced on February 25, 2011, inclusive of a $840 million term loan credit facility, had closed on January 3, 2010 for each of the pro forma periods.
(b) For the six month period ended June 26, 2010, our adjusted earnings were insufficient to cover fixed charges, and the deficiency for that period was $48.1 million.