1
EXHIBIT 12
RALPHS GROCERY COMPANY
(FORMERLY FOOD 4 LESS SUPERMARKETS, INC.)
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN THOUSANDS)
(UNAUDITED)
52 WEEKS ENDED 52 WEEKS ENDED 52 WEEKS ENDED 52 WEEKS ENDED 31 WEEKS ENDED
JUNE 29, 1991 JUNE 27, 1992 JUNE 26, 1993 JUNE 25, 1994 JANUARY 29, 1995
----------------- ------------------ ------------------ ------------------ ------------------
FIXED FIXED FIXED FIXED FIXED
EARNINGS CHARGES EARNINGS CHARGES EARNINGS CHARGES EARNINGS CHARGES EARNINGS CHARGES
-------- ------- -------- ------- -------- ------- -------- ------- -------- -------
Income (loss) before
provision for income
taxes and extraordinary
charges . . . . . . . . . $(3,387) $ -- $(25,555) $ -- $(25,936) $ -- $ -- $ -- $(11,500) $ --
Add: Fixed charges:
Interest expense including
amortization of deferred
financing costs . . . . . 50,084 50,084 70,211 70,211 69,732 69,732 68,250 68,250 42,222 42,222
Interest factor in rent
expense(1) . . . . . . . 6,523 6,523 15,569 15,569 14,835 14,835 16,596 16,596 11,153 11,153
------- ------- -------- ------- -------- ------- ------- ------- -------- -------
$53,220 $56,607 $ 60,225 $85,780 $ 58,631 $84,567 $84,846 $84,846 $ 41,875 $53,375
======= ======= ======== ======= ======== ======= ======= ======= ======== =======
Ratio of earnings to fixed
charges . . . . . . . . . -- -- -- 1.0 --
======= ======== ======== ======= ========
Deficiency of earnings to
cover fixed charges . . . $ 3,387 $ 25,555 $ 25,936 $ -- $ 11,500
======= ======== ======== ======= ========
- ------------------
(1) Calculated as one-third of minimum rent expense:
52 WEEKS ENDED 52 WEEKS ENDED 52 WEEKS ENDED 52 WEEKS ENDED 31 WEEKS ENDED
JUNE 29, 1991 JUNE 27, 1992 JUNE 26, 1993 JUNE 25, 1994 JANUARY 29, 1995
-------------- -------------- -------------- -------------- ----------------
Minimum rent . . . . . . . . . $19,570 $46,706 $44,504 $49,788 $33,458
Interest factor . . . . . . . /3 /3 /3 /3 /3
------- ------- ------- ------- -------
$ 6,523 $15,569 $14,835 $16,596 $11,153
======= ======= ======= ======= =======
2
RALPHS GROCERY COMPANY
(FORMERLY FOOD 4 LESS SUPERMARKETS, INC.)
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN THOUSANDS)
(UNAUDITED)
<Caption)
PRO FORMA
52 WEEKS ENDED 12 WEEKS ENDED 12 WEEKS ENDED 52 WEEKS ENDED
JANUARY 28, 1996 APRIL 23, 1995 APRIL 21, 1996 JANUARY 28, 1996
--------------------- ------------------ ------------------- ---------------------
FIXED FIXED FIXED FIXED
EARNINGS CHARGES EARNINGS CHARGES EARNINGS CHARGES EARNINGS CHARGES
--------- -------- -------- ------- -------- ------- --------- --------
Income (loss) before provision
for income taxes and extra-
ordinary charges............. $(259,617) $ -- $(2,512) $ -- $(31,981) $ -- $(289,100) $ --
Add Fixed charges:
Interest expense including
amortization of deferred
financing costs.............. 178,774 178,774 16,916 16,916 56,084 56,084 246,200 246,200
Interest factor in rent
expense(1)................... 32,584 32,584 5,484 5,484 9,873 9,873 32,584 32,584
--------- -------- ------- ------- -------- ------- --------- --------
$ (48,259) $211,358 $19,888 $22,400 $ 33,976 $65,957 $ (10,316) $278,784
========= ======== ======= ======= ======== ======= ========= ========
Ratio of earnings to fixed
charges..................... -- -- -- --
========= ======= ======== =========
Deficiency of earnings to
cover fixed charges......... $ 259,617 $ 2,512 $ 31,981 $ 289,100
========= ======= ======== =========
- ------------------------------
(1) Calculated as one-third of minimum rent expense:
PRO FORMA
52 WEEKS ENDED 12 WEEKS ENDED 12 WEEKS ENDED 52 WEEKS ENDED
JANUARY 28, 1996 APRIL 23, 1995 APRIL 21, 1996 JANUARY 28, 1996
---------------- -------------- -------------- ----------------
Minimum rent.................. $97,752 $16,451 $29,620 $97,752
Interest factor............... /3 /3 /3 /3
------- ------- ------- -------
$32,584 $ 5,484 $ 9,873 $32,584
======= ======= ======= =======
3
RALPHS SUPERMARKETS, INC.
(AS SUCCESSOR TO RALPHS GROCERY COMPANY)
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES(a)
(DOLLARS IN THOUSANDS)
(UNAUDITED)
53 WEEKS 52 WEEKS 52 WEEKS 52 WEEKS 52 WEEKS 20 WEEKS
ENDED ENDED ENDED ENDED ENDED ENDED
FEBRUARY 3, FEBRUARY 2, JANUARY 31, JANUARY 30, JANUARY 29, JUNE 13,
1991 1992 1993 1994 1995 1995
----------- ----------- ----------- ----------- ----------- --------
Earnings (loss) before income
taxes, cumulative effect of
change in accounting and
extraordinary item . . . . . . $(25,529) $(27,734) $ 2,792 $ 30,317 $ 32,118 $ 7,400
Add:
Portion of rents
representative of the
interest factor . . . . . . 12,936 15,135 17,745 19,218 19,467 7,987
Capitalized interest . . . . 915 510 1,074 740 325 32
Interest expense . . . . . . 128,477 130,206 125,611 108,755 112,651 41,000
-------- -------- -------- -------- -------- -------
Earnings as adjusted . . . . $116,799 $118,117 $147,222 $159,030 $164,561 $56,419
======== ======== ======== ======== ======== =======
Fixed charges:
Interest expense . . . . . . . 128,477 130,206 125,611 108,755 112,651 41,000
Capitalized interest . . . . . 915 510 1,074 740 325 32
Portion of rents
representative of the
interest factor . . . . . . 12,936 15,135 17,745 19,218 19,467 7,987
-------- -------- -------- -------- -------- -------
Total fixed charges . . . . . $142,328 $145,851 $144,430 $128,713 $132,443 $49,019
======== ======== ======== ======== ======== =======
Ratio of earnings to
fixed charges . . . . . . . . -- (b) -- (b) 1.02 1.24 1.24 1.15
======== ======== ======== ======== ======== =======
- ---------------
(a) The ratio of earnings to fixed charges has been computed based upon net earnings (loss) before income taxes, cumulative effect
of change in accounting, 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 February 3, 1991
and February 2, 1992 by $25,529 and $27,734, respectively.