1
EXHIBIT 12
RALPHS SUPERMARKETS, INC.
(AS SUCCESSOR TO RALPHS GROCERY COMPANY)
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES(A)
(DOLLAR IN THOUSANDS)
(UNAUDITED)
52 WEEKS 53 WEEKS 52 WEEKS 52 WEEKS 52 WEEKS 36 WEEKS 36 WEEKS
ENDED ENDED ENDED ENDED ENDED ENDED ENDED
JANUARY 28, FEBRUARY 3, FEBRUARY 2, JANUARY 31, JANUARY 30, OCTOBER 10, OCTOBER 9,
1990 1991 1992 1993 1994 1993 1994
----------- ----------- ----------- ----------- ----------- ----------- ----------
Earnings (loss) before income taxes,
cumulative effect of change in
accounting and extraordinary
item............................... $(57,670) $(25,529) $(27,734) $ 2,792 $ 30,317 $ 23,771 $ 19,896
Add:
Portion of rents representative
of the interest factor.......... 11,836 12,936 15,135 17,745 19,218 13,092 13,493
Capitalized interest.............. 1,019 915 510 1,074 740 599 227
Interest expense.................. 130,883 128,477 130,206 125,611 108,755 75,748 77,162
-------- -------- -------- -------- -------- -------- --------
Earnings as adjusted.............. $ 86,068 $116,799 $118,117 $147,222 $159,030 $113,210 $110,778
======== ======== ======== ======== ======== ======== ========
Fixed charges:
Interest expense.................. 130,883 128,477 130,206 125,611 108,755 75,748 77,162
Capitalized interest.............. 1,019 915 510 1,074 740 599 227
Portion of rents representative
of the interest factor.......... 11,836 12,936 15,135 17,745 19,218 13,092 13,493
-------- -------- -------- -------- -------- -------- --------
Total fixed charges............... $143,738 $142,328 $145,851 $144,430 $128,713 $ 89,439 $ 90,882
======== ======== ======== ======== ======== ======== ========
Ratio of earnings to fixed charges.. --(b) --(b) --(b) 1.02 1.24 1.27 1.22
======== ======== ======== ======== ======== ======== ========
- ---------------
(a) The ratio of earnings to fixed charges has been computed based upon net
earnings (loss) before income taxes, extraordinary item and fixed charges.
Fixed charges consist of interest expense (including amortization of
self-insurance reserves discount), capitalized interest, amortization of
debt discount and expense and one-third of rental expense (the proportion
deemed representative of the interest factor).
(b) Earnings before income taxes and fixed charges were insufficient to cover
fixed charges for the periods ended January 28, 1990, February 3, 1991 and
February 2, 1992 by $57,670, $25,529 and $27,734, respectively.
Page 1 of 2
2
EXHIBIT 12
FOOD 4 LESS SUPERMARKETS, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN THOUSANDS)
(UNAUDITED)
53 WEEKS ENDED 52 WEEKS ENDED 52 WEEKS ENDED 52 WEEKS ENDED
JUNE 30, 1990 JUNE 29, 1991 JUNE 27, 1992 JUNE 26, 1993
------------------ ------------------ ------------------ ------------------
FIXED FIXED FIXED FIXED
EARNINGS CHARGES EARNINGS CHARGES EARNINGS CHARGES EARNINGS CHARGES
-------- ------- -------- ------- -------- ------- -------- -------
Loss before provision for income taxes
and extraordinary charges............ $(9,106) $ -- $(3,387) $ -- $(25,555) $ -- $(25,936) $ --
Add: Fixed charges:
Interest expense including
amortization of deferred financing
costs............................... 50,789 50,789 50,085 50,085 70,210 70,210 69,733 69,733
Interest factor in rent expense(1).... 3,814 3,814 6,523 6,523 15,569 15,569 14,835 14,835
------- ------- -------- ------- -------- ------- -------- -------
$45,497 $54,603 $53,221 $56,608 $ 60,224 $85,779 $ 58,632 $84,568
======= ======= ======= ======= ======== ======= ======== =======
Ratio of earnings to fixed charges.... -- -- -- --
======= ======= ======== ========
Deficiency of earnings to cover fixed
charges............................. $ 9,106 $ 3,387 $ 25,555 $ 25,936
======= ======= ======== ========
52 WEEKS ENDED 12 WEEKS ENDED 12 WEEKS ENDED
JUNE 25, 1994 SEPTEMBER 18, 1993 SEPTEMBER 17, 1994
------------------ ------------------ ------------------
FIXED FIXED FIXED
EARNINGS CHARGES EARNINGS CHARGES EARNINGS CHARGES
-------- ------- -------- ------- -------- -------
Loss before provision for income taxes
and extraordinary charges............ $ -- $ -- $ (812) $ -- $(2,447) $ --
Add: Fixed charges:
Interest expense including
amortization of deferred financing
costs............................... 68,250 68,250 15,730 15,730 16,008 16,008
Interest factor in rent expense(1).... 16,596 16,596 3,830 3,830 4,095 4,095
------- ------- ------- ------- ------- -------
$84,846 $84,846 $18,748 $19,560 $17,656 $20,103
======= ======= ======= ======= ======= =======
Ratio of earnings to fixed charges.... 1.0 -- --
======= ======= =======
Deficiency of earnings to cover fixed
charges............................. -- $ 812 $ 2,447
======= ======= =======
- ---------------
(1) Calculated as one-third of minimum rent expense (see note 5 in the audited
financial statements):
1990 1991 1992 1993
------- ------- ------- -------
Minimum rent.......................... $11,443 $19,570 $46,706 $44,504
Interest factor....................... /3 /3 /3 /3
------- ------- ------- -------
$ 3,814 $ 6,523 $15,569 $14,835
======= ======= ======= =======
12 WEEKS ENDED 12 WEEKS ENDED
1994 SEPTEMBER 18, 1993 SEPTEMBER 17, 1994
------- ------------------ ------------------
Minimum rent.......................... $49,788 $11,490 $12,286
Interest factor....................... /3 /3 /3
------- ------- -------
$16,596 $ 3,830 $ 4,095
======= ======= =======
Page 2 of 2