Exhibit 12
MRS. FIELDS AND PREDECESSORS
RATIO OF EARNINGS TO FIXED CHARGES
(dollars in thousands)
The Original Cookie Company, Incorporated and
Mrs. Fields Inc. and Subsidiaries the Carved-out Portion of Hot Sam Company, Inc.
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DECEMBER DECEMBER
FISCAL YEARS ENDED 31, 1995 FISCAL YEARS ENDED 31, 1995
-------------------------------- THROUGH -------------------------------- THROUGH
DECEMBER DECEMBER DECEMBER SEPTEMBER DECEMBER DECEMBER DECEMBER SEPTEMBER
31, 1993 31, 1994 30, 1995 17, 1996 31, 1993 31, 1994 30, 1995 17, 1996
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Earnings:
Net loss .......................... $(2,243) $(5,320) $(2,368) $(2,304) $ (333) $(5,355) $(2,096) $(5,645)
Add: Income taxes ................. 215 191 241 205 213 224 263 --
Fixed charges ..................... 1,088 2,155 51 80 4,172 4,381 4,268 2,828
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Total loss ................... $ (940) $(2,974) $(2,076) $(2,019) $ 4,052 $ (750) $ 2,435 $(2,817)
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Fixed charges:
Total fixed charges ....... $ 1,088 $ 2,155 $ 51 $ 80 $ 4,172 $ 4,381 $ 4,268 $ 2,828
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Ratio of earnings to fixed charges (a) -- -- -- -- 0.97x -- 0.57x --
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(a) For purposes of computing the ratio of earnings to fixed charges, earnings
consist of income before income taxes plus fixed charges. Fixed charges
consist of interest expense on all indebtedness (whether paid or accrued
and net of debt premium amortization), including the amortization of debt
issuance costs and original issue discount, noncash interest payments, the
interest component of any deferred payment obligations, the interest
component of all payments associated with capital lease obligations, letter
of credit commissions, fees or discounts and the product of all dividends
and accretion on mandatorily redeemable preferred stock multiplied by a
fraction, the numerator of which is one and the denominator of which is one
minus the current combined federal, state and local statutory tax rate.
Mrs. Fields
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SEPTEMBER FISCAL
18, 1996 YEAR 39 39
THROUGH ENDED PRO FORMA WEEKS ENDED WEEKS ENDED PRO FORMA
DECEMBER 28, JANUARY 3, JANUARY 3, SEPTEMBER 27, OCTOBER 3, OCTOBER 3,
1996 1998 1998 1997 1998 1998
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Earnings:
Income before provision for
income taxes ..................... $ 3,856 $ 463 $ (1,361) $ (2,767) $ (9,021) $(11,457)
Fixed charges .......................... 2,027 8,891 21,778 5,525 9,549 13,794
Exclude pref. dividends ................ (97) (644) (1,436) (276) (108) (620)
Full minority interest loss ............ -- (138) (307) (2) (268) (268)
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Total earnings .................... $ 5,786 $ 8,572 $ 18,674 $ 2,480 $ 152 $ 1,449
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Fixed charges:
Interest expense ....................... $ 1,867 $ 7,830 $ 19,413 $ 5,070 $ 9,001 $ 12,402
Preferred stock dividends as
adjusted .......................... 160 1,061 2,365 455 548 1,392
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Total fixed charges ............... $ 2,027 $ 8,891 $ 21,778 $ 5,525 $ 9,549 $ 13,794
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Ratio of earnings to fixed charges(a)...... 2.85x 0.96x 0.86x 0.45x 0.02x 0.11x
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