EX-12.1 41 dex121.htm STATEMENT REGARDING COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Statement regarding Computation of Ratio of Earnings to Fixed Charges

Exhibit 12.1

EXHIBIT 12—STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

Stripes Holdings LLC

Computation of Ratio of Earnings to Fixed Charges

(in thousands, except ratios)

 

    Fiscal Year Ended     Six Months Ended  
    Predecessor     Predecessor & Company
Combined		     Company  
    December 30,
2001		     December 29,
2002		     December 28,
2003		   January 2,
2005		     January 1, 2006    

July 2,

2006

  
            Actual     As Adjusted (a)    

Earnings:

              

Consolidated pretax income (loss) from continuing operations

   (1,416 )   2,503     2,667   6,047     (20,642 )   (18,551 )   (190 )

Minority interest in income of consolidated subsidiaries

   59     55     65   64     76     76     35  

Loss (income) on equity investments

   —       —       —     (55 )   —       —       (153 )

Fixed charges

   16,131     19,730     19,120   18,742     22,104     22,875     13,743  

Capitalized interest

   —       (78 )   —     —       (275 )   (275 )   (185 )

Amortization of capitalized interest

   —       2     4   4     11     —       —    
                                       

Total earnings available for fixed charges

   14,774     22,212     21,855   24,802     1,274     4,125     13,250  

Fixed Charges:

              

Interest expense

   13,946     16,304     16,035   15,615     18,397     18,505     9,513  

Capitalized interest

   —       78     —     —       275     275     185  

Estimated interest portion of rent expense

   1,937     3,030     2,743   2,748     3,093     3,093     3,520  

Amortization of debt issue costs

   248     318     342   379     339     1,002     525  
                                       

Total fixed charges

   16,131     19,730     19,120   18,742     22,104     22,875     13,743  

Ratio of earnings to fixed charges

   (b )   1.13     1.14   1.32     (b )   (b )   (b )

Notes:

 

(a) Reflects the pro forma adjustments reflected in the unaudited pro forma consolidated statement of operations for the year ended January 1, 2006, included on page 55 herein, and the associated notes on page 56.

 

(b) Earnings for the years ended December 30, 2001, January 1, 2006 (actual), January 1, 2006 (as adjusted), and for the six months ended July 2, 2006, were inadequate to cover fixed charges. The deficiency was $1.4 million, $20.8 million, $18.8 million, and $0.5 million for the respective periods. Included in the fiscal 2005 results (both actual and as adjusted) is $17.3 million of compensation expense recognized for options redeemed related to the December 2005 transactions.