EX-12.1 6 dex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

Exhibit 12.1

 

Carrols Corporation

Computation of Ratio of Earnings to Fixed Charges

(in thousands)

 

     Year ended December 31,

    Six months ended
June 30,


 
     Restated
2000(1)


   Restated
2001(1)


    Restated
2002(1)


   Restated
2003(1)


   2004

    Restated
2004(1)


   2005

 

Earnings:

                                                    

Income (loss) before income taxes

   $ 4,818    $ (8,172 )   $ 14,434    $ 2,943    $ (13,493 )   $ 5,075    $ (9,535 )

Add fixed charges:

                                                    

Interest expense, including amortization of deferred financing costs

     29,571      42,322       36,700      34,069      31,320       15,726      18,792  

Portion of rents representative of the interest factor

     8,105      10,510       10,396      10,570      11,900       5,794      6,105  
    

  


 

  

  


 

  


Total earnings

   $ 42,494    $ 44,600     $ 61,530    $ 47,582    $ 29,727     $ 26,595    $ 15,362  
    

  


 

  

  


 

  


Fixed charges:

                                                    

Interest expense, including amortization of deferred financing costs

   $ 29,571    $ 42,322     $ 36,700    $ 34,069    $ 31,320     $ 15,726    $ 18,792  

Portion of rents representative of the interest factor

     8,105      10,510       10,396      10,570      11,900       5,794      6,105  
    

  


 

  

  


 

  


Total fixed charges

   $ 37,676    $ 52,832     $ 47,096    $ 44,639    $ 43,220     $ 21,520    $ 24,897  
    

  


 

  

  


 

  


Ratio of earnings to fixed charges (2)

     1.13x      —         1.31x      1.07x      —         1.24x      —    

(1) See Note 2 to the Consolidated financial statements included elsewhere in this document regarding the restatement of previously issued financial statements
(2) For purposes of determining the ratio of earnings to fixed charges, earnings are defined as income (loss) before income taxes plus fixed charges. Fixed charges consist of interest expense, including capitalized interest, on all indebtedness, amortization of deferred financing costs and one-third of rental expense on operating leases, representing that portion of rental expense that we deemed to be attributable to interest. Our earnings were insufficient to cover our fixed charges for the year ended December 31, 2001 by $8,172, December 31, 2004 by $13,493 and for the six months ended June 30, 2005 by $9,535.