EX-12 3 g67609ex12.txt COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES 1 EXHIBIT 12 ADVANTICA RESTAURANT GROUP, INC. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
FISCAL YEAR ENDED ONE WEEK FIFTY-ONE FISCAL YEAR ENDED -------------------------- ENDED WEEKS ENDED -------------------------- DECEMBER 31, DECEMBER 31, JANUARY 7, DECEMBER 30, DECEMBER 29, DECEMBER 27, 1996 1997 1998 1998 1999 2000 ------------ ------------ ---------- ------------ ------------ ------------ (In thousands) Loss from continuing operations before income taxes $ (73,654) $ (81,978) $ 589,044 $(129,060) $(274,988) $ (80,670) --------- --------- --------- --------- --------- --------- Add: Restated interest expense excluding capitalized interest 153,839 124,507 1,901 101,590 93,498 90,311 4,696 4,608 83 (7,501) (7,682) (3,366) --------- --------- --------- --------- --------- --------- Subtotal 158,535 129,115 1,984 94,089 85,816 86,945 --------- --------- --------- --------- --------- --------- Restated interest factor in rents 11,668 11,190 218 11,174 12,553 14,606 --------- --------- --------- --------- --------- --------- Total earnings (losses) $ 96,549 $ 58,327 $ 591,246 $ (23,797) $(176,619) $ 20,881 ========= ========= ========= ========= ========= ========= Fixed Charges: Restated interest expense including capitalized interest $ 153,839 $ 124,507 $ 1,901 $ 101,590 $ 93,498 $ 90,311 Restated amortization of debt expense 4,696 4,608 83 (7,501) (7,682) (3,366) --------- --------- --------- --------- --------- --------- Subtotal 158,535 129,115 1,984 94,089 85,816 86,945 Restated interest factor in rents 11,668 11,190 218 11,174 12,553 14,606 --------- --------- --------- --------- --------- --------- Total fixed charges $ 170,203 $ 140,305 $ 2,202 $ 105,263 $ 98,369 $ 101,551 ========= ========= ========= ========= ========= ========= Rate of earnings to fixed charges -- -- 268.5 -- -- -- ========= ========= ========= ========= ========= ========= Deficiency in the coverage of fixed charges By earnings (losses) before fixed charges 73,654 81,978 -- 129,060 274,988 80,670 ========= ========= ========= ========= ========= =========
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.