Exhibit 12
Horizon Lines, Inc.
Computation of Ratio of Earnings to Fixed Charges
(in thousands)
December 22. 2013 | December 23. 2012 | December 25. 2011 | December 26. 2010 | December 20. 2009 | ||||||||||||||||
Earnings: | ||||||||||||||||||||
Loss from continuing operations before income taxes | $ | (35,279 | ) | $ | (75,885 | ) | $ | (53,068 | ) | $ | (35,250 | ) | $ | (13,678 | ) | |||||
Fixed charges | 83,850 | 86,415 | 82,379 | 65,064 | 62,214 | |||||||||||||||
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Earnings from continuing operations, adjusted | $ | 48,571 | $ | 10,530 | $ | 29,311 | $ | 29,814 | $ | 48,536 | ||||||||||
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Ratio of earnings to fixed charges | — | — | — | — | — | |||||||||||||||
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Fixed Charges: | ||||||||||||||||||||
Interest expense | $ | 66,952 | $ | 62,894 | $ | 55,677 | $ | 40,117 | $ | 38,036 | ||||||||||
Interest portion of rent expense | 16,898 | 23,521 | 26,702 | 24,351 | 23,752 | |||||||||||||||
Capitalized interest | — | — | — | 596 | 426 | |||||||||||||||
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Total fixed charges | $ | 83,850 | $ | 86,415 | $ | 82,379 | $ | 65,064 | $ | 62,214 |
For the purposes of computing the ratio of earnings to fixed charges, earnings are defined as income before income taxes plus fixed charges. Fixed charges consist of interest expense (including capitalized interest) and the portion of rental expense that is representative of the interest factor. For the years ending December 22, 2013, December 23, 2012, December 25, 2011, December 26, 2010, and December 20, 2009, earnings were insufficient to cover fixed charges by $35.3 million, $75.9 million, $53.1 million, $35.3 million, and $13.7 million, respectively.