Exhibit 12.1
MICHAEL FOODS, INC.
(A Wholly Owned Subsidiary of M-Foods Holdings, Inc.)
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In Thousands, Except Ratios)
COMPANY | PREDECESSOR | ||||||||||||||||||||||
Year Ended December 31, 2006 | Year Ended December 31, 2005 | Year Ended December 31, 2004 | One Month Ended December 31, 2003 | Eleven Ended November 30, 2003 | Year Ended December 31, 2002 | ||||||||||||||||||
Earnings: | |||||||||||||||||||||||
Earnings (loss) before income taxes and equity in (losses) earnings of unconsolidated subsidiary | $ | 38,162 | $ | 53,580 | $ | 54,955 | $ | (7,365 | ) | $ | (29,065 | ) | $ | 48,071 | |||||||||
Add: | |||||||||||||||||||||||
Fixed charges | 60,206 | 50,128 | 45,522 | 5,103 | 43,562 | 52,355 | |||||||||||||||||
Amortization of capitalized interest | — | — | 572 | 48 | 524 | 572 | |||||||||||||||||
Subtract: | |||||||||||||||||||||||
Interest capitalized | (803 | ) | (461 | ) | (168 | ) | — | (32 | ) | — | |||||||||||||
Adjusted Earnings (Loss) | $ | 97,565 | $ | 103,247 | $ | 100,881 | $ | (2,214 | ) | $ | 14,989 | $ | 100,998 | ||||||||||
Fixed Charges: | |||||||||||||||||||||||
Interest expensed | $ | 54,036 | $ | 46,859 | $ | 42,143 | $ | 4,782 | $ | 38,089 | $ | 46,737 | |||||||||||
Interest portion of rentals | 1,427 | 1,276 | 1,333 | 151 | 1,657 | 1,400 | |||||||||||||||||
Amortization of capitalized debt expense | 4,743 | 1,993 | 2,046 | 170 | 3,816 | 4,218 | |||||||||||||||||
$ | 60,206 | $ | 50,128 | $ | 45,522 | $ | 5,103 | $ | 43,562 | $ | 52,355 | ||||||||||||
Ratio of earnings to fixed charges (1) | 1.62 | 2.06 | 2.22 | — | — | 1.93 | |||||||||||||||||
(1) | Due to the Company’s loss for the one month ended December 31, 2003, and the Predecessor’s loss for the eleven months ended November 30, 2003, the ratio coverage in the respective periods was less the 1:1. The Company and Predecessor needed to generate additional earnings of $7,317,000 and $28,573,000 for the one month ended December 31, 2003 and the eleven months ended November 30, 2003, respectively, to achieve a coverage ratio of 1:1. |