EX-12.1 4 dex121.htm STATEMENT REGARDING COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Statement regarding Computation of Ratio of Earnings to Fixed Charges

Exhibit 12.1

EXHIBIT 12—STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

Stripes Holdings LLC

Computation of Ratio of Earnings to Fixed Charges

(in thousands, except ratios)

 

     Fiscal Year Ended     Nine Months Ended  
     Predecessor     Predecessor & Company
Combined		     Company  
     December 30,
2001		     December 29,
2002		     December 28,
2003		    January 2,
2005		     January 1, 2006     October 1, 2006  
            Actual     As Adjusted (a)     Actual     As Adjusted (a)  

Earnings:

                  

Consolidated pretax income (loss) from continuing operations

    (1,416 )   2,503     2,667    6,047     (20,642 )   (12,289 )   7,173     11,892  

Minority interest in income of consolidated subsidiaries

    59     55     65    64     76     76     47     47  

Loss (income) on equity investments

    —       —       —      (55 )   —       —       (257 )   (257 )

Fixed charges

    16,131     19,730     19,120    18,742     22,104     17,312     20,567     16,396  

Capitalized interest

    —       (78 )   —      —       (275 )   (275 )   (262 )   (262 )

Amortization of capitalized interest

    —       2     4    4     11     —       —       —    
                                               

Total earnings available for fixed charges

    14,774     22,212     21,856    24,802     1,274     4,824     27,268     27,816  

Fixed Charges:

                  

Interest expense

    13,946     16,304     16,035    15,615     18,397     13,192     14,235     10,251  

Capitalized interest

    —       78     —      —       275     275     262     262  

Estimated interest portion of rent expense

    1,937     3,030     2,743    2,748     3,093     3,093     5,288     5,288  

Amortization of debt issue costs

    248     318     342    379     339     752     782     595  
                                               

Total fixed charges

    16,131     19,730     19,120    18,742     22,104     17,312     20,567     16,396  

Ratio of earnings to fixed charges

    (b )   1.13     1.14    1.32     (b )   (b )   1.33     1.70  

Notes:

(a) Reflects the pro forma adjustments reflected in the unaudited pro forma consolidated statement of operations for the year ended January 1, 2006, and the nine months ended October 1, 2006, included herein, and the associated notes.
(b) Earnings for the years ended December 30, 2001, January 1, 2006 (actual) and January 1, 2006 (as adjusted) were inadequate to cover fixed charges. The deficiency was $1.4 million, $20.8 million and $12.5 million, for the respective periods. Included in the fiscal 2005 results (both actual and as adjusted) is $17.3 million of compensation expense recognized for options redeemed related to the December 2005 transactions.