Exhibit 12.1
TOPS HOLDING CORPORATION
RATIO OF EARNINGS TO FIXED CHARGES
The following table sets forth our ratio of consolidated earnings to consolidated fixed charges for Fiscal 2011, Fiscal 2010, Fiscal 2009, Fiscal 2008, the Fiscal 2007 Successor Period and the Fiscal 2007 Predecessor Period (dollars in thousands, except ratio data).
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | Tops Markets, LLC | |
| | | Fiscal 2011
(52 weeks) (1) | | | Fiscal 2010
(52 weeks) (1) | | | Fiscal
2009
(53 weeks) | | | Fiscal
2008
(52 weeks) | | | Fiscal
2007
Successor
Period
(4 weeks) | | | | | Fiscal
2007
Predecessor
Period
(48 weeks) (2) | |
Earnings: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pre-tax income (loss) | | $ | 7,127 | | | $ | (35,958 | ) | | $ | (20,308 | ) | | $ | (17,160 | ) | | $ | 1,979 | | | | | $ | (54,777 | ) |
Plus: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fixed charges | | | 69,792 | | | | 69,393 | | | | 50,838 | | | | 48,285 | | | | 3,202 | | | | | | 50,781 | |
Amortization of capitalized interest | | | 189 | | | | 269 | | | | 269 | | | | 175 | | | | 13 | | | | | | 29 | |
Less: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest capitalized | | | | | | | — | | | | — | | | | 507 | | | | — | | | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Total available earnings | | $ | 77,108 | | | $ | 33,704 | | | $ | 30,799 | | | $ | 30,793 | | | $ | 5,194 | | | | | $ | (3,967 | ) |
Fixed charges: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expensed | | $ | 58,326 | | | $ | 58,316 | | | $ | 42,970 | | | $ | 40,503 | | | $ | 2,763 | | | | | $ | 46,883 | |
Interest capitalized | | | — | | | | — | | | | — | | | | 507 | | | | — | | | | | | — | |
Amortization of discounts/ capitalized costs | | | 3,150 | | | | 2,728 | | | | 1,466 | | | | 1,401 | | | | 76 | | | | | | 4 | |
Interest in rental expenses | | | 8,316 | | | | 8,349 | | | | 6,402 | | | | 5,874 | | | | 363 | | | | | | 3,894 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Total fixed charges: | | $ | 69,792 | | | $ | 69,393 | | | $ | 50,838 | | | $ | 48,285 | | | $ | 3,202 | | | | | | 50,781 | |
Deficiency | | | | | | $ | (35,689 | ) | | $ | (20,039 | ) | | $ | (17,492 | ) | | | | | | | | $ | (54,748 | ) |
Ratio of earnings to fixed charges | | | 1.10 | | | | (A | ) | | | (B | ) | | | (C | ) | | | 1.62 | | | | | | (D | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| (A) | Due to the Company’s loss in Fiscal 2010, the ratio coverage was less than 1:1. The Company must generate additional earnings of $35,689 to achieve a coverage ratio of 1:1. |
| (B) | Due to the Company’s loss in Fiscal 2009, the ratio coverage was less than 1:1. The Company must generate additional earnings of $20,039 to achieve a coverage ratio of 1:1. |
| (C) | Due to the Company’s loss in Fiscal 2008, the ratio coverage was less than 1:1. The Company must generate additional earnings of $17,492 to achieve a coverage ratio of 1:1. |
| (D) | Due to the Company’s loss in the Fiscal 2007 Predecessor Period, the ratio coverage was less than 1:1. The Company must generate additional earnings of $54,748 to achieve a coverage ratio of 1:1. |
| (1) | Fiscal 2011 and Fiscal 2010 includes the operating results of the acquired Penn Traffic supermarkets following the January 29, 2010 Acquisition. |
| (2) | The operating results during these periods represent those of Tops Markets, LLC under the ownership of Koninklijke Ahold N.V. |
