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Exhibit 12
TWINLAB CORPORATION AND SUBSIDIARIES
RATIO OF EARNINGS TO FIXED CHARGES
SCHEDULE OF COMPUTATION
(IN THOUSANDS, EXCEPT RATIOS)
HISTORICAL
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YEAR ENDED DECEMBER 31,
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1991 1992 1993 1994 1995
---- ---- ---- ---- ----
Income before unusual item, provision for
income taxes and extraordinary item ............... $10,331 $14,010 $16,906 $23,920 $30,464
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Add fixed charges:
Interest expense .................................. 461 494 487 761 866
Interest portion of rentals ....................... 351 402 414 423 452
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Total fixed charges ................................... 812 896 901 1,184 1,318
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Income available for fixed charges ..................... $11,143 $14,906 $17,807 $25,104 $31,782
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Ratio of earnings to fixed charges ..................... 13.7 16.6 19.8 21.2 24.1
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HISTORICAL
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THREE MONTHS ENDED
MARCH 31,
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1995 1996
---- ----
Income before unusual item, provision for
income taxes and extraordinary item ............... $6,388 $9,865
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Add fixed charges:
Interest expense .................................. 168 224
Interest portion of rentals ....................... 122 126
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Total fixed charges .................................... 290 350
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$6,678 $10,215
Income available for fixed charges ..................... =================================
Ratio of earnings to fixed charges ..................... 23.0 29.2
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PRO FORMA
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THREE MONTHS THREE MONTHS YEAR LATEST TWELVE
ENDED ENDED ENDED MONTHS ENDED
MARCH 31, MARCH 31, DECEMBER 31, MARCH 31,
1995 1996 1995 1996
----- ---- ---- ----
Income before unusual item, provision for
income taxes and extraordinary item (1) ........... $2,370 $ 6,220 $15,263 $19,113
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Add fixed charges:
Interest expense (2) .............................. 4,004 4,002 16,010 16,008
Interest portion of rentals ....................... 122 126 452 456
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Total fixed charges .................................... 4,126 4,128 16,462 16,464
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Income available for fixed charges ..................... $6,496 $10,348 $31,725 $35,577
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Ratio of earnings to fixed charges ..................... 1.6 2.5 1.9 2.2
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(1) Income before unusual item, provision for income taxes and extraordinary
item for pro forma periods is calculated as follows:
THREE MONTHS THREE MONTHS YEAR LATEST TWELVE
ENDED ENDED ENDED MONTHS ENDED
MARCH 31, MARCH 31, DECEMBER 31, MARCH 31,
1995 1996 1995 1996
---- ---- ---- ----
Income before unusual item, provision for
income taxes and extraordinary item ............... $ 6,388 $ 9,865 $ 30,464 $ 33,941
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LGP Management Fee ..................................... (100) (100) (400) (400)
Reduction in interest income ........................... (82) (167) (313) (398)
Interest expense adjustment ............................ (3,836) (3,778) (15,144) (15,086)
Elimination of nonrecurring Transaction expenses .... - 400 656 1,056
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Total adjustments ................................. (4,018) (3,645) (15,201) (14,828)
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Pro forma income before unusual item, provision
for income taxes and extraordinary item ........... $ 2,370 $ 6,220 $ 15,263 $ 19,113
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(2) Interest expense for pro forma periods is calculated as follows:
THREE MONTHS THREE MONTHS YEAR LATEST TWELVE
ENDED ENDED ENDED MONTHS ENDED
MARCH 31, MARCH 31, DECEMBER 31, MARCH 31,
1995 1996 1995 1996
---- ---- ---- ----
Interest expense before any adjustments ................ $ 168 $ 224 $ 866 $ 922
Interest expense on Notes and New Credit Facility
at a composite interest rate of 9.5%, including
revolving credit commitment and administrative
fees ................................................ 3,669 3,669 14,676 14,676
Interest expense on refinanced debt .................... (152) (210) (807) (865)
Amortization of deferred finance costs ................. 319 319 1,275 1,275
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Total adjustments ................................. 3,836 3,778 15,144 15,086
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Pro forma Interest expense ............................. $4,004 $4,002 $16,010 $16,008
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