Exhibit 12.1
EXHIBIT 12—STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Stripes Holdings LLC
Computation of Ratio of Earnings to Fixed Charges
(in thousands, except ratios)
Fiscal Year Ended | Nine Months Ended | ||||||||||||||||||||||
Predecessor | Predecessor & Company Combined | Company | |||||||||||||||||||||
December 30, 2001 | December 29, 2002 | December 28, 2003 | January 2, 2005 | January 1, 2006 | October 1, 2006 | ||||||||||||||||||
Actual | As Adjusted (a) | Actual | As Adjusted (a) | ||||||||||||||||||||
Earnings: | |||||||||||||||||||||||
Consolidated pretax income (loss) from continuing operations | (1,416 | ) | 2,503 | 2,667 | 6,047 | (20,642 | ) | (12,289 | ) | 7,173 | 11,892 | ||||||||||||
Minority interest in income of consolidated subsidiaries | 59 | 55 | 65 | 64 | 76 | 76 | 47 | 47 | |||||||||||||||
Loss (income) on equity investments | — | — | — | (55 | ) | — | — | (257 | ) | (257 | ) | ||||||||||||
Fixed charges | 16,131 | 19,730 | 19,120 | 18,742 | 22,104 | 17,312 | 20,567 | 16,396 | |||||||||||||||
Capitalized interest | — | (78 | ) | — | — | (275 | ) | (275 | ) | (262 | ) | (262 | ) | ||||||||||
Amortization of capitalized interest | — | 2 | 4 | 4 | 11 | — | — | — | |||||||||||||||
Total earnings available for fixed charges | 14,774 | 22,212 | 21,856 | 24,802 | 1,274 | 4,824 | 27,268 | 27,816 | |||||||||||||||
Fixed Charges: | |||||||||||||||||||||||
Interest expense | 13,946 | 16,304 | 16,035 | 15,615 | 18,397 | 13,192 | 14,235 | 10,251 | |||||||||||||||
Capitalized interest | — | 78 | — | — | 275 | 275 | 262 | 262 | |||||||||||||||
Estimated interest portion of rent expense | 1,937 | 3,030 | 2,743 | 2,748 | 3,093 | 3,093 | 5,288 | 5,288 | |||||||||||||||
Amortization of debt issue costs | 248 | 318 | 342 | 379 | 339 | 752 | 782 | 595 | |||||||||||||||
Total fixed charges | 16,131 | 19,730 | 19,120 | 18,742 | 22,104 | 17,312 | 20,567 | 16,396 | |||||||||||||||
Ratio of earnings to fixed charges | (b | ) | 1.13 | 1.14 | 1.32 | (b | ) | (b | ) | 1.33 | 1.70 |
Notes:
(a) | Reflects the pro forma adjustments reflected in the unaudited pro forma consolidated statement of operations for the year ended January 1, 2006, and the nine months ended October 1, 2006, included herein, and the associated notes. |
(b) | Earnings for the years ended December 30, 2001, January 1, 2006 (actual) and January 1, 2006 (as adjusted) were inadequate to cover fixed charges. The deficiency was $1.4 million, $20.8 million and $12.5 million, for the respective periods. Included in the fiscal 2005 results (both actual and as adjusted) is $17.3 million of compensation expense recognized for options redeemed related to the December 2005 transactions. |