EXHIBIT 12
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Amounts in thousands, except ratios)
(Unaudited)
ArtCarved (Historical)
Fiscal Year Ended Three Months Ended
August 31, August 31, August 27, August 26, August 31, November 25, November 30,
1992 1993 1994 1995 1996 1995 1996
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Earnings available for fixed charges:
Income (loss) before income tax expense $ (3,231) $ (684) $ 1,124 $ (5,966) $ (1,831) $ 875 $1,724
Fixed charges $ 15,205 $ 14,356 $ 12,994 $ 15,368 $ 13,122 $3,566 $2,845
-------- -------- -------- -------- -------- ------ ------
Total earnings $ 11,974 $ 13,672 $ 14,118 $ 9,402 $ 11,291 $4,441 $4,569
======== ======== ======== ======== ======== ====== ======
Fixed charges:
Interest expense (including capitalized
interest and amortization of deferred
debt issuance cost) $ 15,040 $ 14,122 $ 12,733 $ 15,176 $ 12,931 $3,507 $2,788
Interest element of rent expense $ 165 $ 234 $ 261 $ 192 $ 191 $ 59 $ 57
-------- -------- -------- -------- -------- ------ ------
Total fixed charges $ 15,205 $ 14,356 $ 12,994 $ 15,368 $ 13,122 $3,566 $2,845
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Ratio of Earnings to Fixed Charges(1) -- -- 1.1x -- -- 1.3x 1.6x
(1) For ArtCarved's fiscal years ended August 31, 1992, August 31, 1993, August
26, 1995 and August 31, 1996, earnings before fixed charges were
insufficient to cover fixed charges by approximately $3.2 million,
$0.7 million, $6.0 million and $1.8 million, respectively.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Amounts in thousands, except ratios)
(Unaudited)
Balfour (Historical)
Fiscal Year Ended Nine Months Ended
February 29, February 28, February 27, February 26, February 25, November 26, November 24,
1992 1993 1994 1995 1996 1995 1996
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Earnings available for fixed charges:
Income (loss) before income tax expense $(15,896) $(31,283) $ 4,738 $(10,877) $ 55 $ (1,011) $ (1,226)
Fixed charges $ 9,480 $ 9,788 $ 1,417 $ 1,957 $ 2,880 $ 2,075 $ 2,105
-------- -------- -------- -------- -------- -------- --------
Total earnings $ (6,416) $(21,495) $ 6,155 $ (8,920) $ 2,935 $ 1,064 $ 879
======== ======== ======== ======== ======== ======== ========
Fixed charges:
Interest expense (including capitalized
interest and amortization of deferred
debt issuance cost) $ 9,457 $ 9,741 $ 1,356 $ 1,796 $ 2,573 $ 1,851 $ 1,816
Interest element of rent expense $ 23 $ 47 $ 61 $ 161 $ 307 $ 224 $ 289
-------- -------- -------- -------- -------- -------- --------
Total fixed charges $ 9,480 $ 9,788 $ 1,417 $ 1,957 $ 2,880 $ 2,075 $ 2,105
======== ======== ======== ======== ======== ======== ========
Ratio of Earnings to Fixed Charges(1) -- -- 4.3x -- 1.0x -- --
(1) For Balfour's fiscal years ended February 29, 1992, February 28, 1993 and
February 26, 1995, Balfour's earnings before fixed charges were
insufficient to cover fixed charges by approximately $15.9 million,
$31.3 million and $10.9 million, respectively. For the nine months ended
November 26, 1995 and November 24, 1996, Balfour's earnings before fixed
charges were insufficient to cover fixed charges by approximately $1.0
million and $1.2 million, respectively.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Amounts in thousands, except ratios)
(Unaudited)
Historical Statements Historical Statements
-------------------------------- ------------------------------
ArtCarved Year Balfour Twelve ArtCarved Three Balfour Three
Ended Aug. 31, Months Ended Proforma Months Ended Months Ended Proforma
1996 Aug. 25, 1996 Combined Nov. 30, 1996 Nov. 24, 1996 Combined
----------------------------------------- ------------------------------------------
Earnings available for fixed charges:
Income (loss) before income tax expense $ (1,831) $ 663 $ 3,026 $ 1,724 $ (382) $ 2,222
Fixed charges $ 13,122 $ 2,972 $ 14,807 $ 2,845 $ 716 $ 3,699
-------- -------- -------- -------- -------- --------
Total earnings $ 11,291 $ 3,635 $ 17,833 $ 4,569 $ 334 $ 5,921
======== ======== ======== ======== ======== ========
Fixed charges:
Interest expense (including capitalized
interest and amortization of deferred
debt issuance cost) $ 12,931 $ 2,601 $ 14,616 $ 2,788 $ 619 $ 3,642
Interest element of rent expense $ 191 $ 371 $ 191 $ 57 $ 97 $ 57
-------- -------- -------- -------- -------- --------
Total fixed charges $ 13,122 $ 2,972 $ 14,807 $ 2,845 $ 716 $ 3,699
======== ======== ======== ======== ======== ========
Ratio of Earnings to Fixed Charges(1) -- 1.2x 1.2x 1.6x -- 1.6x
(1) For ArtCarved's fiscal year ended August 31, 1996, ArtCarved's earnings
before fixed charges were insufficient to cover fixed charges by
approximately $1.8 million. For Balfour's three months ended
November 24, 1996, Balfour's earnings before fixed charges were
insufficient to cover fixed charges by approximately $0.4 million.
COMPUTATION OF RATIO OF EBITDA TO CASH INTEREST EXPENSE
(Amounts in thousands, except ratios)
(Unaudited)
Pro Forma Combined
Twelve Months Ended Three Months Ended
Aug. 25, 1996 Nov. 30, 1996
-----------------------------------------
Income before income tax expense $ 3,026 $ 2,222
Add:
Interest expense $13,739 $ 3,435
Depreciation and amortization $ 6,067 $ 1,517
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EBITDA $22,832 $ 7,174
======= =======
Interest expense $13,739 $ 3,435
Less:
Amortization of deferred financing costs $ 608 $ 152
------- -------
Cash interest expense $13,131 $ 3,283
======= =======
Ratio of EBITDA to Cash Interest Expense 1.7x 2.2x