EX-12 6 ratios.txt RATIOS EXHIBIT 12.1 ------------ ADVANTICA RESTAURANT GROUP, INC. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
One Week Fifty-One -------- Ended Weeks Ended --------- 1997 January 7, 1998 December 30, 1998 1999 -------- --------------- ----------------- --------- (In thousands) Income (loss) from continuing operations before income taxes $(81,978) $589,044 $(129,060) $(274,988) -------- -------- --------- --------- Add: Interest expense excluding capitalized interest 124,507 1,901 101,590 93,498 Amortization of debt expense 4,608 83 (7,501) (7,682) -------- -------- --------- --------- Subtotal 129,115 1,984 94,089 85,816 -------- -------- --------- --------- Interest factor in rents 11,190 218 11,174 12,349 -------- -------- --------- --------- Total earnings (losses) $ 58,327 $591,246 $ (23,797) $(176,823) ======== ======== ========= ========= Fixed charges: Interest expense excluding capitalized interest $124,507 $ 1,901 $ 101,590 $ 93,498 Amortization of debt expense 4,608 83 (7,501) (7,682) -------- -------- --------- --------- Subtotal 129,115 1,984 94,089 85,816 Interest factor in rents 11,190 218 11,174 12,349 -------- -------- --------- --------- Total fixed charges $140,305 $ 2,202 $ 105,263 $ 98,165 ======== ======== ========= ========= Ratio of earnings to fixed charges -- 268.5 -- -- ======== ======== ========= ========= Deficiency in the coverage of fixed charges by earnings (losses) before fixed charges 81,978 (589,044) 129,060 274,988 ======== ======== ========= ========= Three Three Quarters Quarters Ended Ended ------- ------- September 26, September 26, 2000 2001 2001 2002 -------- ------- --------- --------- (In thousands) Income (loss) from continuing operations before income taxes $(80,670) $(94,751) $ (47,727) $ 9,266 -------- -------- --------- --------- Add: Interest expense excluding capitalized interest 90,311 78,252 54,732 60,171 Amortization of debt expense (3,366) 1,511 1,080 1,835 -------- -------- --------- --------- Subtotal 86,945 79,763 55,812 62,006 -------- -------- --------- --------- Interest factor in rents 15,774 15,513 12,019 11,635 -------- -------- --------- --------- Total earnings (losses) $ 22,049 $ 525 $ 20,104 $ 82,907 ======== ======== ========= ========= Fixed charges: Interest expense excluding capitalized interest $ 90,311 $ 78,252 $ 54,732 $ 60,171 Amortization of debt expense (3,366) 1,511 1,080 1,835 -------- -------- --------- --------- Subtotal 86,945 79,763 55,812 62,006 Interest factor in rents 15,774 15,513 12,019 11,635 -------- -------- --------- --------- Total fixed charges $102,719 $ 95,276 $ 67,831 $ 73,641 ======== ======== ========= ========= Ratio of earnings to fixed charges -- -- -- 1.1 ======== ======== ========= ========= Deficiency in the coverage of fixed charges by earnings (losses) before fixed charges 80,670 94,751 47,727 (9,266) ======== ======== ========= =========
For purposes of these computations, the ratio of earnings to fixed charges has been calculated by dividing pretax earnings by fixed charges. Earnings, as used to compute the ratio, equals the sum of income before income taxes and fixed charges excluding capitalized interest. Fixed charges are the total interest expenses including capitalized interest, amortization of debt expenses and a rental factor that is representative of an interest factor (estimated to be one third) on operating leases.