EXHIBIT 12.1
Michael Foods, Inc.
Computation of ratio of earnings to fixed charges
For the Periods Ended
(in thousands)
| Company | Predecessor | Company | Predecessor | 2001 Predecessor | |||||||||||||||||||||||||||||||
Three months ended March 31, 2004 | Three months ended March 31, 2003 | One month ended December 31, 2003 | Eleven months ended November 30, 2003 | Year ended December 31, 2002 | Nine months ended December 31, 2001 | Three months ended March 31, 2001 | Years ended December 31, | ||||||||||||||||||||||||||||
| 2000 | 1999 | ||||||||||||||||||||||||||||||||||
Earnings: | |||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | $ | 13,300 | $ | 9,609 | $ | (7,365 | ) | $ | (29,547 | ) | $ | 48,204 | $ | 21,815 | $ | (9,312 | ) | $ | 73,600 | $ | 74,666 | ||||||||||||||
Add: | |||||||||||||||||||||||||||||||||||
Fixed charges | 11,380 | 12,403 | 5,103 | 43,530 | 52,355 | 46,045 | 3,692 | 15,315 | 14,514 | ||||||||||||||||||||||||||
Amortization of capitalized interest | 143 | 143 | 48 | 524 | 572 | 429 | 143 | 572 | 572 | ||||||||||||||||||||||||||
Subtract: | |||||||||||||||||||||||||||||||||||
Interest capitalized | (14 | ) | (32 | ) | — | (32 | ) | — | (196 | ) | — | (224 | ) | (1,054 | ) | ||||||||||||||||||||
Adjusted Earnings | $ | 24,809 | $ | 22,123 | $ | (2,214 | ) | $ | 14,475 | $ | 101,131 | $ | 68,093 | $ | (5,477 | ) | $ | 89,263 | $ | 88,698 | |||||||||||||||
Fixed Charges: | |||||||||||||||||||||||||||||||||||
Interest expensed and capitalized | $ | 10,418 | $ | 11,004 | $ | 4,782 | $ | 38,057 | $ | 46,737 | $ | 40,172 | $ | 3,292 | $ | 13,715 | $ | 12,972 | |||||||||||||||||
Interest portion of rentals | 452 | 452 | 151 | 1,657 | 1,400 | 1,155 | 375 | 1,500 | 1,442 | ||||||||||||||||||||||||||
Amortization of capitalized debt expense | 510 | 947 | 170 | 3,816 | 4,218 | 2,359 | 25 | 100 | 100 | ||||||||||||||||||||||||||
| $ | 11,380 | $ | 12,403 | $ | 5,103 | $ | 43,530 | $ | 52,355 | $ | 43,686 | $ | 3,692 | $ | 15,315 | $ | 14,514 | ||||||||||||||||||
Ratio of earnings to fixed charges (1) | 2.18 | 1.78 | — | — | 1.93 | 1.56 | — | 5.83 | 6.11 | ||||||||||||||||||||||||||
| (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, and the 2001 Predecessor’s loss for the three months ended March 31, 2001, the ratio coverage in the respective periods was less the 1:1. The Company, Predecessor and the 2001 Predecessor needed to generate additional earnings of $7,317,000, $29,056,000 and $9,169,000 for the one month ended December 31, 2003, the eleven months ended November 30, 2003, and the three months ended March 31, 2001, respectively, to achieve a coverage ratio of 1:1. |