EXHIBIT 12.1

 

GOLD KIST INC.

 

COMPUTATION OF RATIO OF MARGINS TO FIXED CHARGES (1)

 

FOR THE FIVE YEARS ENDED JUNE 28, 2003 AND

 

THE NINE MONTHS ENDED MARCH 29, 2003 AND MARCH 27, 2004

(Dollar Amounts in Thousands)

 

     For the Fiscal Years Ended:
     Nine Months Ended:
  
      
 1999
  
    
 2000
  
   2001
  
   2002
  
   2003
  
   Mar. 2003
  
   Mar. 2004
  

Fixed Charges:

                                               

Debt interest

    $ 26,050       30,425     39,996     27,962     24,968     18,423     27,701  

Interest portion of rents

      3,610       4,407     4,869     6,184     7,036     5,237     4,909  
    
 
 
 
 
 
 

Subtotal

      29,660       34,832     44,865     34,146     32,004     23,660     32,610  

Less: Capitalized interest

      (394 )     (89 )   (744 )   (370 )   (178 )   (147 )   (6 )
    
 
 
 
 
 
 
     $ 29,266       34,743     44,121     33,776     31,826     23,513     32,604  
    
 
 
 
 
 
 

Margins (loss) from continuing operations before income taxes

    $ 102,747       (48,854 )   46,677     69,684     (68,759 )   (87,075 )   96,252  

Less: Equity in earnings or plus equity in losses of affiliates

      639       8,312     (10,294 )   (2,266 )   805     906     (897 )

Plus: Distributions from affiliates

      5,110                   6,543           —       421  

Fixed charges less capitalized interest

      29,266       34,743     44,121     33,776     31,826     23,513     32,604  
    
 
 
 
 
 
 

Subtotal

      137,762       (5,799 )   80,504     107,737     (36,128 )   (62,656 )   128,380  

Divided by fixed charges (including capitalized interest)

      29,660       34,832     44,865     34,146     32,004     23,660     32,610  
    
 
 
 
 
 
 

Ratio

      4.64       (0.17 )   1.79     3.16     (1.13 )   (2.65 )   3.94  
    
 
 
 
 
 
 

Excess of fixed charges over margins (loss) from continuing operations before income taxes plus fixed charges, less capitalized interest

      —       $ 48,854     —       —       68,759     87,075     —    
    
 
 
 
 
 
 

 

(1) The ratio of margins to fixed charges is computed by dividing margins by fixed charges. For this purpose, "margins" include margins (loss) from continuing operations before income taxes, plus fixed charges. Fixed charges include interest, whether expensed or capitalized, amortization of debt expense and discount or premium relating to any indebtedness, whether expensed or capitalized and the portion of rental expense that is representative of the interest factor in these rentals. In fiscal 2000, 2003 and the nine months ended March 29, 2003, margins were insufficient to cover fixed charges by approximately $48.9 million, $68.8 million and $87.1 million, respectively.