EXHIBIT 12.1
FRIENDLY ICE CREAM CORPORATION AND SUBSIDIARIES
SCHEDULE OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(IN THOUSANDS)
SIX MONTHS ENDED
----------------------------
1992 1993 1994 1995 1996 JUNE 30, 1996 JUNE 29, 1997
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Earnings
Income (loss) before (provision for)
benefit from income taxes and cumulative
effect of changes in accounting
principles.............................. $ (12,121) $ (30,670) $ (8,597) $ (25,234) $ (13,640) $ (14,180) $ (7,864)
Interest and amortization of deferred
finance costs........................... 37,630 38,786 45,467 41,904 44,141 22,138 22,238
Implicit rental interest expense.......... 4,986 5,171 5,590 5,729 5,990 2,924 2,937
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Total earnings.......................... 30,495 13,287 42,460 22,399 36,491 10,882 17,311
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Fixed Charges
Interest and amortization of deferred
finance costs........................... 37,630 38,786 45,467 41,904 44,141 22,138 22,238
Capitalized interest...................... 128 156 176 62 49 35 17
Implicit rental interest expense.......... 4,986 5,171 5,590 5,729 5,990 2,924 2,937
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Total fixed charges..................... 42,744 44,113 51,233 47,695 50,180 25,097 25,192
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Earnings insufficient to cover fixed
charges................................... $ 12,249 $ 30,826 $ 8,773 $ 25,296 $ 13,689 $ 14,215 $ 7,881
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Pro forma Data (a):
Earnings
Income (loss) before (provision for)
benefit from income taxes and cumulative
effect of changes in accounting
principles.............................. $ 3,284 $ (218)
Interest and amortization of deferred
finance costs........................... 28,163 14,156
Implicit rental interest expense.......... 5,990 2,937
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Total earnings.......................... 37,437 17,311
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Fixed Charges
Interest and amortization of deferred
finance costs........................... 28,163 14,156
Capitalized interest...................... 49 17
Implicit rental interest expense.......... 5,990 2,937
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Total fixed charges..................... 34,202 17,110
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Earnings sufficient to cover fixed
charges................................... $ 3,235 $ (201)
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Ratio of earnings to fixed charges.......... 1.1x 1.0x
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TWELVE MONTHS
ENDED
JUNE 29, 1997
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Earnings
Income (loss) before (provision for)
benefit from income taxes and cumulative
effect of changes in accounting
principles.............................. $ (7,324)
Interest and amortization of deferred
finance costs........................... 44,241
Implicit rental interest expense.......... 6,003
-------
Total earnings.......................... 42,490
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Fixed Charges
Interest and amortization of deferred
finance costs........................... 44,241
Capitalized interest...................... 31
Implicit rental interest expense.......... 6,003
-------
Total fixed charges..................... 50,275
-------
Earnings insufficient to cover fixed
charges................................... $ 7,355
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-------
Pro forma Data (a):
Earnings
Income (loss) before (provision for)
benefit from income taxes and cumulative
effect of changes in accounting
principles.............................. $ 9.164
Interest and amortization of deferred
finance costs........................... 28,226
Implicit rental interest expense.......... 6,003
-------
Total earnings.......................... 43,393
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Fixed Charges
Interest and amortization of deferred
finance costs........................... 28,226
Capitalized interest...................... 31
Implicit rental interest expense.......... 6,003
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Total fixed charges..................... 34,260
-------
Earnings sufficient to cover fixed
charges................................... $ 9,133
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-------
Ratio of earnings to fixed charges.......... 1.3x
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(a) As adjusted to give effect to the Recapitalization and the changes in
accounting principel for pensions. See Note 10 of Notes to Consolidated
Financial Statements.