Exhibit 12
AMES DEPARTMENT STORES, INC.
RATIO OF EARNINGS TO FIXED CHARGES
(Unaudited)
(Thousands, except ratio data)
Fiscal Year Ended For the Quarter Ended
January 25, January 31, January 30, May 2, May 1,
1997 1998 1999 1998 1999
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Income (loss) before income taxes 26,804 53,633 52,605 (4,627) (41,230)
Add:
Interest expense 19,043 11,600 15,253 2,054 11,922
Interest component of rental expense 16,541 18,409 21,121 4,757 8,578
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Earnings available for fixed charges 62,388 83,642 88,979 2,184 (20,730)
Fixed Charges:
Interest expense 19,043 11,600 15,253 2,054 11,922
Interest component of rental expense 16,541 18,409 21,121 4,757 8,578
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Total fixed charges 35,584 30,009 36,374 6,811 20,500
Ratio of earnings to fixed charges 1.8x 2.8x 2.4x NA NA
For the purpose of calculating the ratio of earnings to fixed charges, earnings
consist of income before income taxes plus fixed charges (net of capitalized
interest). Fixed charges consist of interest expense on all indebtedness and
capitalized interest, amortized premiums, discounts and capitalized expenses
related to indebtedness, and one-third of rent expense on operating leases
representing that portion of rent expense deemed by us to be attributable to
interest. Earnings were inadequate to cover fixed charges for the quarters ended
May 2, 1998 and May 1, 1999. The amounts of additional earnings that would have
been required to cover fixed charges for such periods are $4.6 million and $41.2
million, respectively.