EX-12 5 ex12a601.txt EXHIBIT 12 COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS COMBINED
AGWAY INC. AND CONSOLIDATED SUBSIDIARIES (THOUSANDS OF DOLLARS) --------------------------------------------------------------------- FOR THE 9 MONTHS ENDED MARCH FOR THE YEARS ENDED JUNE ---------------------------------------------------------- 2001 2000 1999 1998 1997 1996 --------- ---------- ----------- --------- --------- -------- Earnings before income taxes and member refunds ............ $ (1,206) $ 13,015 $ 23,200 $ 30,184 $ 13,226 $ 17,531 Fixed charges - Interest ...... 60,794 71,580 62,369 61,395 58,016 58,450 - Rentals ....... 3,954 5,272 4,768 4,131 3,434 2,828 -------- -------- -------- -------- -------- -------- Total fixed charges ........... 64,748 76,852 67,137 65,526 61,450 61,278 -------- -------- -------- -------- -------- -------- Adjusted net earnings ......... $ 63,542 $ 89,867 $ 90,337 $ 95,710 $ 74,676 $ 78,809 ======== ======== ======== ======== ======== ======== Ratio of adjusted net earnings to total fixed charges ........ (a) 1.2 1.3 1.5 1.2 1.3 ======== ======== ======== ======== ======== ======== Deficiency of adjusted net earnings to total fixed charges $ (1,206) N/D N/D N/D N/D N/D ======== ======== ======== ======== ======== ======== Fixed charges and preferred dividends combined: Preferred dividend factor: Preferred dividend requirements ............... $ 1,429 $ 3,060 $ 3,287 $ 3,522 $ 4,115 $ 4,255 Ratio of pre-tax earnings to after-tax earnings* ........ 274.4% 47.3% 55.8% 53.0% 64.3% 50.5% Preferred dividend factor on pre-tax basis .............. 521 6,469 5,891 6,645 6,400 8,426 Total fixed charges (above) ... 64,748 76,852 67,137 65,526 61,450 61,278 -------- -------- -------- -------- -------- -------- Fixed charges and preferred dividends combined ............ $ 65,269 $ 83,321 $ 73,028 $ 72,171 $ 67,850 $ 69,704 ======== ======== ======== ======== ======== ======== Ratio of adjusted net earnings to fixed charges and preferred dividends combined** .......... (b) 1.1 1.2 1.3 1.1 1.1 ======== ======== ======== ======== ======== ======== Deficiency of adjusted net earnings to fixed charges and preferred dividends combined ...................... $ (1,727) N/D N/D N/D N/D N/D ======== ======== ======== ======== ======== ========
* Represents after-tax earnings (loss) from continuing operations divided by pre-tax earnings (loss) from continuing operations, which adjusts dividends on preferred stock to a pre-tax basis. ** Represents adjusted net earnings divided by fixed charges and preferred dividends combined. N/D No deficiency. (a) Adjusted net earnings are inadeequate to cover total fixed charges. (b) Adjusted net earnings are inadequate to cover total fixed charges and preferred dividends combined. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS COMBINED
AGWAY INC. (PARENT) (THOUSANDS OF DOLLARS) ------------------------------------------------------------------------- FOR THE 9 MONTHS ENDED MARCH FOR THE YEARS ENDED JUNE ------------------------------------------------------------ 2001 2000 1999 1998 1997 1996 ----------- --------- --------- --------- --------- --------- Earnings before income taxes and member refunds .............. $(12,270) $ 1,993 $ 14,077 $ 20,243 $ (2,541) $ 19,323 Fixed charges - Interest....... 17,325 18,085 13,660 8,575 10,626 9,723 - Rentals ....... 2,395 3,193 3,017 2,604 2,135 1,614 -------- -------- -------- -------- -------- -------- Total fixed charges ............. 19,720 21,278 16,677 11,179 12,761 11,337 -------- -------- -------- -------- -------- -------- Adjusted net earnings ........... $ 7,450 $ 23,271 $ 30,754 $ 31,422 $ 10,220 $ 30,660 ======== ======== ======== ======== ======== ======== Ratio of adjusted net earnings to total fixed charges .......... (a) 1.1 1.8 2.8 (a) 2.7 ======== ======== ======== ======== ======== ======== Deficiency of adjusted net earnings to total fixed charges . $(12,270) N/D N/D N/D $ (2,541) N/D ======== ======== ======== ======== ======== ======== Fixed charges and preferred dividends combined: Preferred dividend factor: Preferred dividend requirements ......... $ 1,429 $ 3,060 $ 3,287 $ 3,522 $ 4,115 $ 4,255 Ratio of pre-tax earnings to after-tax earnings* .......... 46.2% (12.0%) 143.2% 124.6% (215.2%) 95.8% Preferred dividend factor on . pre-tax basis ................ 3,093 (25,500) 2,295 2,826 (1,913) 4,441 Total fixed charges (above) ..... 19,720 21,278 16,677 11,179 12,761 11,337 -------- -------- -------- -------- -------- -------- Fixed charges and preferred dividends combined .............. $ 22,813 $ (4,222) $ 18,972 $ 14,005 $ 10,848 $ 15,778 ======== ======== ======== ======== ======== ======== Ratio of adjusted net earnings to fixed charges and preferred dividends combined** ............ (b) 5.5 2.0 2.2 (b) 1.9 ======== ======== ======== ======== ======== ======== Deficiency of adjusted net earnings to fixed charges and preferred dividends combined ........................ $(15,363) N/D N/D N/D $ (628) N/D ======== ======== ======== ======== ======== ========
* Represents after-tax net earnings (loss) from continuing operations divided by pre-tax earnings (loss) from continuing operations, which adjusts dividends on preferred stock to a pre-tax basis. ** Represents adjusted net earnings divided by fixed charges and preferred dividends combined. N/D No deficiency. (a) Adjusted net earnings are inadequate to cover total fixed charges. (b) Adjusted net earnings are inadequate to cover total fixed charges and preferred dividends combined.