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

MICHAEL FOODS, INC.

(A Wholly Owned Subsidiary of M-Foods Holdings, Inc.)

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(In Thousands, Except Ratios)

 

     COMPANY     PREDECESSOR
    

Year Ended

December 31,

2006

   

Year Ended

December 31,

2005

   

Year Ended

December 31,

2004

   

One Month

Ended

December 31,

2003

   

Eleven
Months

Ended

November 30,

2003

   

Year Ended

December 31,

2002

Earnings:

            

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

   $ 38,162     $ 53,580     $ 54,955     $ (7,365 )   $ (29,065 )   $ 48,071

Add:

            

Fixed charges

     60,206       50,128       45,522       5,103       43,562       52,355

Amortization of capitalized interest

     —         —         572       48       524       572

Subtract:

            

Interest capitalized

     (803 )     (461 )     (168 )     —         (32 )     —  
                                              

Adjusted Earnings (Loss)

   $ 97,565     $ 103,247     $ 100,881     $ (2,214 )   $ 14,989     $ 100,998
                                              

Fixed Charges:

            

Interest expensed

   $ 54,036     $ 46,859     $ 42,143     $ 4,782     $ 38,089     $ 46,737

Interest portion of rentals

     1,427       1,276       1,333       151       1,657       1,400

Amortization of capitalized debt expense

     4,743       1,993       2,046       170       3,816       4,218
                                              
   $ 60,206     $ 50,128     $ 45,522     $ 5,103     $ 43,562     $ 52,355
                                              

Ratio of earnings to fixed charges (1)

     1.62       2.06       2.22       —         —         1.93
                                              

(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, the ratio coverage in the respective periods was less the 1:1. The Company and Predecessor needed to generate additional earnings of $7,317,000 and $28,573,000 for the one month ended December 31, 2003 and the eleven months ended November 30, 2003, respectively, to achieve a coverage ratio of 1:1.