EXHIBIT 12.1
UNIFIED WESTERN GROCERS, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In thousands except for ratios)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Thirteen Weeks Ended December 30, 2006 | | | Fiscal Year | |
| | | 2006 | | | 2005 | | | 2004 | | | 2003 | | | 2002 | |
(1) Adjusted earnings: | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings from continuing operations | | $ | 3,462 | | | $ | 16,142 | | | $ | 10,820 | | | $ | 7,406 | | | $ | 5,279 | | | $ | 1,985 | |
Income taxes | | | 2,360 | | | | 7,912 | | | | 6,426 | | | | 4,572 | | | | 3,358 | | | | 2,172 | |
Patronage dividends | | | 6,577 | | | | 20,973 | | | | 21,404 | | | | 20,742 | | | | 16,612 | | | | 16,713 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Subtotal: Earnings from continuing operations before income taxes and patronage dividends | | | 12,399 | | | | 45,027 | | | | 38,650 | | | | 32,720 | | | | 25,249 | | | | 20,870 | |
Amortization of capitalized interest | | | 22 | | | | 78 | | | | 217 | | | | 188 | | | | 162 | | | | — | |
Fixed charges | | | 4,948 | | | | 16,384 | | | | 17,156 | | | | 22,221 | | | | 24,080 | | | | 25,957 | |
Less: Capitalized interest | | | (564 | ) | | | (156 | ) | | | (107 | ) | | | (2,625 | ) | | | (929 | ) | | | (487 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Adjusted earnings (a) | | $ | 16,805 | | | $ | 61,333 | | | $ | 55,916 | | | $ | 52,504 | | | $ | 48,562 | | | $ | 46,340 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
(2) Fixed Charges: | | | | | | | | | | | | | | | | | | | | | | | | |
Gross rental expense | | $ | 5,303 | | | $ | 21,867 | | | $ | 27,140 | | | $ | 29,176 | | | $ | 34,128 | | | $ | 29,277 | |
Less: Estimated rent component | | | 4,799 | | | | 19,965 | | | | 24,942 | | | | 26,900 | | | | 31,568 | | | | 26,964 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Estimated interest component of rental expense | | | 504 | | | | 1,902 | | | | 2,198 | | | | 2,276 | | | | 2,560 | | | | 2,313 | |
Interest expense | | | 3,880 | | | | 14,326 | | | | 14,851 | | | | 17,320 | | | | 20,591 | | | | 23,157 | |
Capitalized interest | | | 564 | | | | 156 | | | | 107 | | | | 2,625 | | | | 929 | | | | 487 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total fixed charges (b) | | $ | 4,948 | | | $ | 16,384 | | | $ | 17,156 | | | $ | 22,221 | | | $ | 24,080 | | | $ | 25,957 | |
| | | �� | | | | | | | | | | | | | | | | | | | | | |
Ratio of Earnings to Fixed Charges (a)/(b) | | | 3.40 | x | | | 3.74 | x | | | 3.26 | x | | | 2.36 | x | | | 2.02 | x | | | 1.79 | x |
| | | | | | | | | | | | | | | | | | | | | | | | |
(a)(b)—Cross-reference on page.
(1) | Adjusted earnings used in computing the ratio of earnings to fixed charges consist of earnings from continuing operations before income taxes and patronage dividends, plus amortization of capitalized interest and fixed charges, less capitalized interest. |
(2) | Fixed charges consist of the sum of the portion of rental expense that is representative of the interest factor, interest expense (including amortization of deferred financing costs) and capitalized interest. |