Exhibit 12.1
CONNORS BROS. HOLDINGS, L.P.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Predecessor | | | | Successor |
| | | Years Ended December 31, | | | January 1,
2008 to
November 22,
2008 | | | | November 23,
2008 (inception)
to
December 31,
2008 | | | Year Ended
December 31,
2009 | | Three Months
Ended
April 4,
2009 | | Three Months
Ended
April 3,
2010 |
| | | 2005 | | 2006 | | 2007 | | | | | | | |
| | | | | | | | | | (in thousands, except ratios) | | | | | | | |
Pre-tax income (loss) from continuing operations | | $ | 50,504 | | $ | 49,481 | | $ | (65,200 | ) | | $ | 12,473 | | | | $ | (3,673 | ) | | $ | 16,364 | | $ | 1,581 | | $ | 19,215 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fixed charges | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest on long-term and short term debt | | | 11,729 | | | 16,653 | | | 18,339 | | | | 15,825 | | | | | 5,059 | | | | 46,707 | | | 12,534 | | | 7,904 |
Capitalized interest | | | — | | | — | | | — | | | | — | | | | | — | | | | — | | | — | | | — |
Preferred stock dividend | | | — | | | — | | | — | | | | — | | | | | — | | | | — | | | — | | | — |
Rental expenses interest factor | | | — | | | — | | | — | | | | — | | | | | — | | | | — | | | — | | | — |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total fixed charges | | | 11,729 | | | 16,653 | | | 18,339 | | | | 15,825 | | | | | 5,059 | | | | 46,707 | | | 12,534 | | | 7,904 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total earnings (loss) | | $ | 62,233 | | $ | 66,134 | | $ | (46,861 | ) | | $ | 28,298 | | | | $ | 1,386 | | | $ | 63,071 | | $ | 14,115 | | $ | 27,119 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratio of earnings to fixed charges (1) | | | 5.3 | | | 4.0 | | | (2.6 | ) | | | 1.8 | | | | | 0.3 | | | | 1.4 | | | 1.1 | | | 3.4 |
| (1) | For the year ended December 31, 2007, the ratio of earnings to fixed charges reflects a deficiency. In 2007, the Predecessor incurred losses as a result of a product recall. For the year ended December 31, 2007, the amount of the deficiency was $65.2 million, and the amount of pre-tax charges related to the product recall totaled $120.5 million. For the period from November 23, 2008 (inception) to December 31, 2008, the ratio of earnings to fixed charges reflects a deficiency. In 2008, the Successor incurred losses as a result of non-cash inventory “step-up” charges and the cost of hedging purchase price consideration. For the period from November 23, 2008 (inception) to December 31, 2008, the amount of the deficiency was $3.7 million, and the amounts of the non-cash inventory “step-up” charges and cost of hedging purchase price consideration were $3.6 million and $7.6 million, respectively. |
