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Denny's Corporation
Exhibit 12 - Computation of Ratio of Earnings to Fixed Charges
One Week Fifty-One
Ended Weeks Ended
January 7, December 30,
1998 1998 1999 2000 2001 2002
(In thousands, except for ratio of earnings to fixed charges)
Income (loss) from continuing operations before income taxes $589,044 $(128,016) $(274,988) $ (80,670) $(86,973) $ 6,112
-------- --------- --------- --------- -------- --------
Add:
Interest expense excluding capitalized interest 1,901 101,590 93,498 90,311 78,252 77,002
Amortization of debt expense (a) 83 (7,501) (7,682) (3,366) 1,511 2,756
-------- --------- --------- --------- -------- --------
Subtotal 1,984 94,089 85,816 86,945 79,763 79,758
Interest factor in rents 218 11,174 12,349 15,774 15,513 14,967
-------- --------- --------- --------- -------- --------
Total earnings (losses) $591,246 $ (22,753) $(176,823) $ 22,049 $ 8,303 $100,837
======== ========= ========= ========= ======== ========
Fixed charges:
Interest expense excluding capitalized interest $ 1,901 $ 101,590 $ 93,498 $ 90,311 $ 78,252 $ 77,002
Amortization of debt expense (a) 83 (7,501) (7,682) (3,366) 1,511 2,756
-------- --------- --------- --------- -------- --------
Subtotal 1,984 94,089 85,816 86,945 79,763 79,758
Interest factor in rents 218 11,174 12,349 15,774 15,513 14,967
-------- --------- --------- --------- -------- --------
Total fixed charges 2,202 105,263 98,165 102,719 95,276 94,725
======== ========= ========= ========= ======== ========
Ratio of earnings to fixed charges 268.5x -- -- -- -- 1.1x
======== ========= ========= ========= ======== ========
Deficiency in the coverage of fixed charges by earnings
(losses) before fixed charges $ -- $ 129,060 $ 274,988 $ 80,670 $ 86,973 $ --
======== ========= ========= ========= ======== ========
For purposes of these computations, the ratio of earnings to fixed charges has
been calculated by dividing pretax earnings by fixed charges. Earnings, as used
to compute the ratio, equals the sum of income before income taxes and fixed
charges excluding capitalized interest. Fixed charges are the total interest
expenses including capitalized interest, amortization of debt expenses and a
rental factor that is representative of an interest factor (estimated to be one
third) on operating leases.