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DAIRY MART CONVENIENCE STORES, INC.
RATIO OF EARNINGS TO FIXED CHARGES EXHIBIT 12
FISCAL YEAR ENDED
JANUARY 30, JANUARY 29, JANUARY 28, FEBRUARY 3, FEBRUARY 1,
1993 1994 1995 1996 1997
(IN THOUSANDS)
Earnings
Income from continuing operations ($ 2,899) $ 1,794 ($10,761) ($ 6,000) ($1,886)
Provision for (benefit from) income taxes (1,898) 1,308 (6,558) (3,220) (727)
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Earnings before income taxes (4,797) 3,102 (17,319) (9,220) (2,613)
Fixed charges 13,183 12,905 14,741 15,290 16,357
Less: Capitalized interest 254 56 75 69 29
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Net fixed charges 12,929 12,849 14,666 15,221 16,328
Earnings available for fixed charges $ 8,132 $ 15,951 ($ 2,653) $ 6,001 $13,715
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Fixed charges:
Interest expense $ 7,456 $ 7,644 $ 9,219 $ 9,661 10,877
Amortization of deferred financing costs 282 271 340 461 277
Capitalized interest 254 56 75 69 29
Portion of rents representative
of the interest factor(2) 5,191 4,934 5,107 5,099 5,174
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Total fixed charges $ 13,183 $ 12,905 $ 14,741 $ 15,290 $16,357
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Ratio of earnings to fixed charges 0.62(1) 1.24 (0.18)(1) 0.39(1) 0.84(1)
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(1) For the fiscal years ended January 30, 1993, January 28, 1995, February 3,
1996 and February 1, 1997 the Company's earnings were inadequate to cover
fixed charges by $5,051,000, $17,394,000, $9,289,000 and $2,642,000,
respectively.
(2) The portion of rents representative of the interest factor is deemed to be
1/3 of rent expense.
The deficit was calculated by taking the difference between earnings
available for fixed charges and total fixed charges.