EXHIBIT 12 ---------- CANANDAIGUA BRANDS, INC. AND SUBSIDIARIES STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (in thousands of dollars)
For the nine For the Six For the Years Months Ended For the Years Ended Months Ended Ended November 30, February 28, February 29, August 31, ------------------- ------------------------------ ------------ ------------------- 1999 1998 1999 1998 1997 1996 1995 1994 -------- -------- -------- -------- -------- ------------ -------- -------- Earnings:(a) Income before provision for income taxes $103,078 $ 84,731 $104,430 $ 79,881 $ 79,160 $ 13,630 $ 62,626 $ 7,824 Add fixed charges 83,075 27,307 46,523 35,851 37,074 18,684 27,337 19,919 -------- -------- -------- -------- -------- -------- -------- -------- Earnings $186,153 $112,038 $150,953 $115,732 $116,234 $ 32,314 $ 89,963 $ 27,743 ======== ======== ======== ======== ======== ======== ======== ======== Fixed Charges: Interest on debt and capitalized leases $ 80,291 $ 24,951 $ 43,537 $ 32,917 $ 34,473 $ 17,447 $ 25,121 $ 18,367 Amortization of direct financing costs 1,483 1,647 1,867 2,082 2,112 1,046 1,881 1,287 Amortization of discount on debt 316 287 388 352 112 -- -- -- Interest element of rentals 985 422 731 500 377 191 335 265 -------- -------- -------- -------- -------- -------- -------- -------- Total fixed charges $ 83,075 $ 27,307 $ 46,523 $ 35,851 $ 37,074 $ 18,684 $ 27,337 $ 19,919 ======== ======== ======== ======== ======== ======== ======== ======== Ratio of Earnings to Fixed Charges 2.2 4.1 3.2 3.2 3.1 1.7 3.3 1.4 ======== ======== ======== ======== ======== ======== ======== ======== (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.