EXHIBIT 12.1
FRIENDLY ICE CREAM CORPORATION AND SUBSIDIARIES
SCHEDULE OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN THOUSANDS)
NINE MONTHS
ENDED
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SEPTEMBER 29,
1992 1993 1994 1995 1996 1996
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Earnings
Income (loss) before (provision for) benefit from
income taxes and cumulative effect of changes in
accounting principles................................ $ (12,121) $ (30,670) $ (8,597) $ (25,234) $ (13,640) $ (10,236)
Interest and amortization of deferred finance costs.... 37,630 38,786 45,467 41,904 44,141 33,084
Implicit rental interest expense....................... 4,986 5,171 5,590 5,729 5,990 4,507
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Total earnings....................................... 30,495 13,287 42,460 22,399 36,491 27,355
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Fixed Charges
Interest and amortization of deferred finance costs.... 37,630 38,786 45,467 41,904 44,141 33,084
Capitalized interest................................... 128 156 176 62 49 44
Implicit rental interest expense....................... 4,986 5,171 5,590 5,729 5,990 4,507
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Total fixed charges.................................. 42,744 44,113 51,233 47,695 50,180 37,635
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Earnings insufficient to cover fixed charges............. $ 12,249 $ 30,826 $ 8,773 $ 25,296 $ 13,689 10,280
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Ratio of earnings to fixed charges....................... -- -- -- -- -- --
Pro Forma Data (a):
Earnings
Income before provision for income taxes and cumulative
effect of changes in accounting principles........... $ 2,643 $ 1,978
Interest and amortization of deferred finance costs.... 28,804 21,580
Implicit rental interest expense....................... 5,990 4,507
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Total earnings....................................... 37,437 28,065
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Fixed Charges
Interest and amortization of deferred finance costs.... 28,804 21,580
Capitalized interest................................... 49 44
Implicit rental interest expense....................... 5,990 4,507
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Total fixed charges.................................. 34,843 26,131
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Earnings sufficient to cover fixed charges............... $ 2,594 $ 1,934
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Ratio of earnings to fixed charges....................... 1.1x 1.1x
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SEPTEMBER 28,
1997
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Earnings
Income (loss) before (provision for) benefit from
income taxes and cumulative effect of changes in
accounting principles................................ $ 215
Interest and amortization of deferred finance costs.... 32,972
Implicit rental interest expense....................... 4,540
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Total earnings....................................... 37,727
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Fixed Charges
Interest and amortization of deferred finance costs.... 32,972
Capitalized interest................................... 27
Implicit rental interest expense....................... 4,540
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Total fixed charges.................................. 37,539
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Earnings insufficient to cover fixed charges............. --
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Ratio of earnings to fixed charges....................... 1.0x
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Pro Forma Data (a):
Earnings
Income before provision for income taxes and cumulative
effect of changes in accounting principles........... $ 11,570
Interest and amortization of deferred finance costs.... 21,617
Implicit rental interest expense....................... 4,540
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Total earnings....................................... 37,727
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Fixed Charges
Interest and amortization of deferred finance costs.... 21,617
Capitalized interest................................... 27
Implicit rental interest expense....................... 4,540
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Total fixed charges.................................. 26,184
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Earnings sufficient to cover fixed charges............... $ 11,543
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Ratio of earnings to fixed charges....................... 1.4x
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(a) As adjusted to give effect to the Recapitalization and the changes in
accounting principle for pensions. See Note 10 of Notes to Consolidated
Financial Statements.