EX-12 5 c25309_s3x12.txt COMPUTATION Exhibit 12 CONSTELLATION BRANDS, INC. AND SUBSIDIARIES STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS (in millions of dollars)
For the Fiscal Years Ended For the Six For the Six February 28, For the Fiscal For the Fiscal Months Ended Months Ended ----------------------------- Year Ended Year Ended August 31, 2003 August 31, 2002 2003 2002 2001 February 29, 2000 February 28, 1999 --------------- ---------------- ---- ---- ---- ----------------- ----------------- Earnings: (a) Income before provision for income taxes $ 116.8 $ 143.3 $ 334.9 $ 230.0 $ 162.2 $ 129.0 $ 104.4 Add fixed charges 96.3 57.4 112.8 122.9 116.2 114.0 46.5 --------------- ---------------- ------------ ----------- ------------ ----------------- -------------- Earnings, as adjusted $ 213.1 $ 200.7 $ 447.7 $ 352.8 $ 278.4 $ 243.0 $ 150.9 =============== ================ ============ =========== ============ ================= ============== Fixed Charges: Interest on debt and capitalized leases $ 82.5 $ 54.6 $ 107.0 $ 116.4 $ 111.0 $ 110.0 $ 43.5 Amortization of direct financing costs 12.4 1.8 3.7 4.1 3.1 2.2 1.9 Amortization of discount on debt -- -- -- 0.5 0.5 0.4 0.4 Interest element of 1.4 1.0 2.1 1.9 1.6 1.4 0.7 rentals --------------- ---------------- ------------ ----------- ------------ ----------------- -------------- Total fixed charges 96.3 57.4 112.8 122.9 116.2 114.0 46.5 Preferred stock dividends, adjusted to a pre-tax 1.3 -- -- -- -- -- -- equivalent basis --------------- ---------------- ------------ ----------- ------------ ----------------- -------------- Combined fixed charges and preferred stock dividends $ 97.6 $ 57.4 $ 112.8 $ 122.9 $ 116.2 $ 114.0 $ 46.5 =============== ================ ============ =========== ============ ================= ============== Ratio of Earnings to Fixed Charges 2.2x 3.5x 4.0x 2.9x 2.4x 2.1x 3.2x =============== ================ ============ =========== ============ ================= ============== Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividend 2.2x 3.5x 4.0x 2.9x 2.4x 2.1x 3.2x =============== ================ ============ =========== ============ ================= ============== (a) For the purpose of calculating the ratio of earnings to fixed charges, "earnings" represent income before provision for income taxes plus fixed charges. "Fixed charges" consist of interest expensed and capitalized, amortization of debt issuance costs, amortization of discount on debt, and the portion of rental expense which management believes is representative of the interest component of lease expense. "Preferred stock dividends" consist of income before taxes that is required to pay the dividends on our outstanding Series A mandatory convertible preferred stock.