[EXHIBIT] 12.1
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
The Predecessor The Company
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2/28/93 Year 1/1/95 9/8/95 Year Year Year
Through Ended Through Through Ended Ended Ended
12/31/93 12/31/94 9/8/95 6/30/96 6/30/97 6/30/98 6/30/99
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In Thousands In Thousands
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Earnings:
Pretax income from
continuing operations $ (4,908) $ (5,947) $ (5,485) $ 5,057 $ 5,885 $ (29,682) $(2,125)
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Total fixed charges 2,846 3,636 2,963 1,375 5,343 15,404 18,183
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Total Earnings(1) $ (2,062) $ (2,311) $ (2,522) $ 6,432 $ 11,228 $ (14,278) $ 16,058
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Fixed Charges:
Interest expense,
including amortization
of deferred financing
fees $ 2,182 $ 3,170 $ 2,576 $ 687 $ 4,179 $ 13,405 $ 16,464
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Interest element
of rentals(2) 664 466 387 688 1,164 1,999 1,719
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Total Fixed Charges(1) $ 2,846 $ 3,636 $ 2,963 $ 1,375 $ 5,343 $ 15,404 $ 18,183
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Ratio of Earnings to
Fixed Charges -- -- -- 4.68 2.10 -- --
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Dollar Deficiency of
Earnings to Fixed
Charges(3) $ (4,908) $ (5,947) $ (5,485) -- -- $ (29,682) $ (2,125)
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(1) In computing the ratio of earnings to fixed charges: (a) "earnings"
have been based on income from continuing operations before income taxes and
fixed charges and (b) "fixed charges" consist of interest expense, including
amortization of deferred financing fees and the estimated interest portion of
rents.
(2) The interest portion of rent expense was assumed to be one-third of
the total rental expense.
(3) For the periods from January 1, 1993 through February 28, 1993 and
from March 1, 1993 through December 31, 1993, the year ended December 31, 1994,
the period from January 1, 1995 through September 8, 1995, and the years ended
June 30, 1999 and 1998, earnings are inadequate to cover fixed charges.
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS ON SCHEDULE II
To Color Spot Nurseries, Inc. and Subsidiaries:
We have audited, in accordance with generally accepted auditing standards,
the consolidated financial statements of Color Spot Nurseries, Inc. and
Subsidiaries included in this Form 10-K, and have issued our report thereon
dated August 23, 1999. Our audit was made for the purpose of forming an
opinion on those statements taken as a whole. Schedule II, "Valuation and
Qualifying Accounts," is the responsibility of the Company's management and
is presented for purposes of complying with the Securities and Exchange
Commission's rules and is not part of the basic financial statements. This
schedule has been subjected to the auditing procedures applied in the audit
of the basic financial statements and, in our opinion, fairly states in all
material respects the financial data required to be set forth therein in
relation to the basic financial statements taken as a whole.
/s/ ARTHUR ANDERSEN LLP
San Francisco, California
August 23, 1999
Schedule II
Valuation and Qualifying Accounts
Additions
Balance at Charged
Beginning of to Costs and Deduction from Balance at End
Period Expenses Reserves of Period
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(in thousands)
Valuation and qualifying accounts
deducted from the assets to which they
apply:
For the year ended June 30, 1999
Allowance for uncollectible accounts $3,084 $1,337 $2,567 $1,854
For the year ended June 30, 1998
Allowance for uncollectible accounts $1,661 $2,647 $1,224 $3,084
For the year ended June 30, 1997
Allowance for uncollectible accounts $524 $1,164 $27 $1,661