Exhibit 12
CANANDAIGUA BRANDS, INC. AND SUBSIDIARIES
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(in thousands of dollars)
For the
For the Fiscal Six Month
Years Transition
Months Ended Ended Period Ended
August 31, February 28, February 29, For the Fiscal Years Ended August 31,
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1998 1997 1998 1997 1996 1995 1994 1993
Earnings: (a)
Income before provision $49,809 $37,984 $84,866 $47,791 $ 6,703 $66,698 $18,924 $25,268
for income taxes
Add fixed charges 18,231 17,723 35,851 37,074 18,684 27,337 19,919 7,515
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Earnings $68,040 $55,707 $120,717 $84,865 $25,387 $94,035 $38,843 $32,783
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Fixed Charges:
Interest on debt and $16,665 $16,290 $32,917 $34,473 $17,447 $25,121 $18,367 $6,273
capitalized leases
Amortization of direct 1,095 1,025 2,082 2,112 1,046 1,881 1,287 628
financing costs
Amortization of discount 189 172 352 112 - - - -
Interest element of rentals 282 236 500 377 191 335 265 614
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Total fixed charges $18,231 $17,723 $35,851 $37,074 $18,684 $27,337 $19,919 $7,515
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Ratio of Earnings to Fixed 3.7 3.1 3.4 2.3 1.4 3.4 2.0 4.4
Charges ======== ======== ========= ======== ============ ======== ======== ========
(a) For the purpose of calculating the ratio of earnings to fixed charges, "earnings" represent income before
provision for income taxes plus fixed charges. "Fixed charges" consist of interest expensed and capitalized,
amortization of debt issuance costs, amortization of discount on debt, and the portion of rental expense which
management believes is representative of the interest component of lease expense.