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

 

PILGRIM’S PRIDE CORPORATION

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

 

          Year Ended
     First Quarter
2004
    September 27,
2003
    September 28,
2002
     September 29,
2001
    September 30,
2000
    October 2,
1999
     (amounts in thousands, except ratio)

EARNINGS:

                                           

Income before income taxes

    $ 18,607    $ 63,235    $ 1,910     $ 61,861    $ 62,786    $ 90,904

Add:  Total fixed charges

                                           

(see below)

      15,780      51,126      49,801       48,406      29,168      26,706

Less:  Interest Capitalized

      413      1,535      6,014       7,153      3,313      2,032
    
  
  
 
  
  

Total Earnings

    $ 33,974    $ 112,826    $ 45,697     $ 103,114    $ 88,641    $ 115,578
    
  
  
 
  
  

FIXED CHARGES:

                                           

Interest(1)

    $ 13,394    $ 41,835    $ 40,444     $ 38,852    $ 21,712    $ 20,889

Portion of rental expense representative of the interest factor(2)

      2,386      9,291      9,357       9,554      7,456      5,817
    
  
  
 
  
  

Total fixed charges

    $ 15,780    $ 51,126    $ 49,801     $ 48,406    $ 29,168    $ 26,706
    
  
  
 
  
  

Ratio of earnings to fixed charges

      2.15      2.21              (3)     2.13      3.04      4.33
(1) Interest includes amortization of capitalized financing fees.
(2) One-third of rental expenses is assumed to be representative of the interest factor.
(3) Earnings were insufficient to cover fixed charges by $4,104.