Exhibit 12.1
SDW HOLDINGS CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(IN MILLIONS)
PERIOD
DECEMBER 21,
TWELVE MONTHS TWELVE MONTHS NINE MONTHS THREE MONTHS 1994
ENDED ENDED ENDED ENDED THROUGH
DECEMBER 26, DECEMBER 25, SEPTEMBER 24, DECEMBER 20, SEPTEMBER 27,
1992 1993 1994 1994 1995
--------------- --------------- --------------- --------------- -------------
S.D. WARREN S.D. WARREN S.D. WARREN S.D. WARREN
COMPANY AND COMPANY AND COMPANY AND COMPANY AND CONSOLIDATED
CERTAIN RELATED CERTAIN RELATED CERTAIN RELATED CERTAIN RELATED SDW HOLDINGS
AFFILIATES AFFILIATES AFFILIATES AFFILIATES CORPORATION
(PREDECESSOR) (PREDECESSOR) (PREDECESSOR) (PREDECESSOR) (SUCCESSOR)
--------------- --------------- --------------- --------------- -------------
Income (loss)
before taxes
and other
items.......... $82.6 $ 1.9 $28.0 $24.9 $ 70.8
Adjustments:
Capitalized
interest...... (0.8) -- (1.4) -- (0.9)
Dividends and
accretion on
subsidiary's
preferred
stock......... -- -- -- -- (15.8)
Total fixed
charges, net.. 17.1 15.8 12.5 3.4 125.8
----- ----- ----- ----- ------
Excess of
earnings to
cover fixed
charges and
preferred stock
dividends...... $98.9 $17.7 $39.1 $28.3 $179.9
===== ===== ===== ===== ======
Ratio of
earnings to
cover fixed
charges and
preferred stock
dividends...... 5.8x 1.1x 3.1x 8.3x 1.4x
===== ===== ===== ===== ======
Fixed charges
and preferred
stock
dividends:
Interest
expense....... $ 9.0 $ 8.5 $ 6.4 $ 2.3 $106.0
Interest
portion of
Biomass
contract...... 5.1 4.6 3.2 0.9 2.4
Interest
portion of
rent(1)....... 2.2 2.7 1.5 0.2 0.7
Dividends and
accretion on
subsidiary's
preferred
stock......... -- -- -- -- 15.8
Capitalized
interest...... 0.8 -- 1.4 -- 0.9
----- ----- ----- ----- ------
Total fixed
charges and
preferred stock
dividends...... $17.1 $15.8 $12.5 $ 3.4 $125.8
===== ===== ===== ===== ======
TWELVE MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED
OCTOBER 2, APRIL 3, APRIL 2,
1996 1996 1997
------------- ------------ ------------
CONSOLIDATED CONSOLIDATED CONSOLIDATED
SDW HOLDINGS SDW HOLDINGS SDW HOLDINGS
CORPORATION CORPORATION CORPORATION
(SUCCESSOR) (SUCCESSOR) (SUCCESSOR)
------------- ------------ ------------
Income (loss)
before taxes
and other
items.......... $ 12.0 $21.2 $(2.7)
Adjustments:
Capitalized
interest...... (1.9) (0.6) (0.8)
Dividends and
accretion on
subsidiary's
preferred
stock......... (23.5) (11.5) (12.9)
Total fixed
charges, net.. 138.1 73.3 67.0
------------- ------------ ------------
Excess of
earnings to
cover fixed
charges and
preferred stock
dividends...... $124.7 $82.4 $50.6
============= ============ ============
Ratio of
earnings to
cover fixed
charges and
preferred stock
dividends...... * 1.1x *
============= ============ ============
Fixed charges
and preferred
stock
dividends:
Interest
expense....... $108.9 $59.1 $51.8
Interest
portion of
Biomass
contract...... 2.7 1.6 1.0
Interest
portion of
rent(1)....... 1.1 0.5 0.5
Dividends and
accretion on
subsidiary's
preferred
stock......... 23.5 11.5 12.9
Capitalized
interest...... 1.9 0.6 0.8
------------- ------------ ------------
Total fixed
charges and
preferred stock
dividends...... $138.1 $73.3 $67.0
============= ============ ============
- ------------
* Ratio is less than 1 to 1 for period presented.
(1) Interest expense component of rent is 30% of rental expense.