1
EXHIBIT 12
RALPHS GROCERY COMPANY
(FORMERLY FOOD 4 LESS SUPERMARKETS, INC.)
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(IN THOUSANDS)
(UNAUDITED)
52 WEEKS ENDED 52 WEEKS ENDED 52 WEEKS ENDED 31 WEEKS ENDED
JUNE 27, 1992 JUNE 26, 1993 JUNE 25, 1994 JANUARY 29, 1995
------------------ ------------------ ------------------ ------------------
FIXED FIXED FIXED FIXED
EARNINGS CHARGES EARNINGS CHARGES EARNINGS CHARGES EARNINGS CHARGES
-------- ------- -------- ------- -------- ------- -------- -------
Income (loss) before provision
for income taxes and
extraordinary charges......... $(25,555) $ -- $(25,936) $ -- $ -- $ -- $(11,500) $ --
Add: Fixed charges:
Interest expense including
amortization of deferred
financing costs............... 70,211 70,211 69,732 69,732 68,250 68,250 42,222 42,222
Interest factor in rent
expense(1).................... 15,569 15,569 14,835 14,835 16,596 16,596 11,153 11,153
-------- ------- -------- ------- ------- ------- -------- -------
$ 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................. $ 25,555 $ 25,936 $ -- $ 11,500
======== ======== ======= ========
- ---------------
(1) Calculated as one-third of minimum rent expense:
31 WEEKS ENDED
52 WEEKS ENDED 52 WEEKS ENDED 52 WEEKS ENDED JANUARY 29,
JUNE 27, 1992 JUNE 26, 1993 JUNE 25, 1994 1995
--------------- --------------- --------------- ---------------
Minimum rent....................... $46,706 $44,504 $49,788 $33,458
Interest factor.................... /3 /3 /3 /3
------- ------- ------- -------
$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
(IN THOUSANDS)
(UNAUDITED)
52 WEEKS ENDED 53 WEEKS ENDED 12 WEEKS ENDED 12 WEEKS ENDED
JANUARY 28, 1996 FEBRUARY 2, 1997 APRIL 21, 1996 APRIL 27, 1997
-------------------- ------------------- ------------------ -------------------
FIXED FIXED FIXED FIXED
EARNINGS CHARGES EARNINGS CHARGES EARNINGS CHARGES EARNINGS CHARGES
--------- -------- -------- -------- -------- ------- -------- --------
Income (loss) before
provision for income
taxes and extraordinary
charges................. $(259,617) $ -- $(93,791) $ -- $(31,981) $ -- $(11,995) $ --
Add Fixed charges:
Interest expense including
amortization of deferred
financing costs......... 178,774 178,774 248,428 248,428 56,084 56,084 57,041 57,041
Interest factor in rent
expense(1).............. 32,584 32,584 48,700 48,700 9,873 9,873 12,099 12,099
--------- -------- -------- ------- -------- ------- -------- --------
$ (48,259) $211,358 $203,337 $297,128 $ 33,976 $65,957 $ 57,145 $ 69,140
========= ======== ======== ======= ======== ======= ======== ========
Ratio of earnings to fixed
charges................. -- -- -- --
========= ======== ======== ========
Deficiency of earnings to
cover fixed charges..... $ 259,617 $ 93,791 $ 31,981 $(11,995)
========= ======== ======== ========
- ---------------
(1) Calculated as one-third of minimum rent expenses.
52 WEEKS ENDED 53 WEEKS ENDED 12 WEEKS ENDED 12 WEEKS ENDED
JANUARY 28, 1996 FEBRUARY 2, 1997 APRIL 21, 1996 APRIL 27, 1997
------------------- ------------------ ---------------- ------------------
Minimum rent.............. $97,752 $146,101 $ 29,620 $ 36,298
Interest factor........... /3 /3 /3 /3
------- -------- ------- -------
$32,584 $ 48,700 $ 9,873 $ 12,099
======= ======== ======= =======
3
RALPHS SUPERMARKETS, INC.
(AS SUCCESSOR TO RALPHS GROCERY COMPANY)
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES(a)
(IN THOUSANDS)
(UNAUDITED)
52 WEEKS 52 WEEKS 52 WEEKS
ENDED ENDED ENDED
JANUARY 31, JANUARY 30, JANUARY 29,
1993 1994 1995
----------- ----------- -----------
Earnings before income taxes, cumulative effect of change
in accounting and extraordinary item.................... $ 2,792 $ 30,317 $ 32,118
Add:
Portion of rents representative of the interest
factor............................................... 17,745 19,218 19,467
Capitalized interest.................................... 1,074 740 325
Interest expense........................................ 125,611 108,755 112,651
----------- ----------- -----------
Earnings as adjusted.................................... $ 147,222 $ 159,030 $ 164,561
======== ======== ========
Fixed charges:
Interest expense........................................ 125,611 108,755 112,651
Capitalized interest.................................... 1,074 740 325
Portion of rents representative of the interest
factor............................................... 17,745 19,218 19,467
----------- ----------- -----------
Total fixed charges..................................... $ 144,430 $ 128,713 $ 132,443
======== ======== ========
Ratio of earnings to fixed charges........................ 1.02 1.24 1.24
======== ======== ========
- ---------------
(a) The ratio of earnings to fixed charges has been computed based upon net
earnings 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).