Exhibit 12
CONSTELLATION BRANDS, INC. AND SUBSIDIARIES
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND
EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED STOCK DIVIDENDS
(in millions of dollars)
For the Three Months Ended For the Fiscal For the Fiscal Years Ended For the Fiscal
May 31, Year Ended February 28, Year Ended
2004 2003 February 29, 2004 2003 2002 2001 February 29, 2000
---- ---- ----------------- ---- ---- ---- -----------------
Earnings: (a)
Income before
provision for income
taxes $ 80.2 $ 61.2 $ 344.4 $ 334.9 $ 227.4 $ 162.2 $ 129.0
Add fixed charges 33.9 46.8 169.6 112.9 123.0 116.2 114.0
Earnings, as
adjusted $ 114.1 $ 108.0 $ 514.0 $ 447.8 $ 350.4 $ 278.4 $ 243.0
Fixed Charges:
Interest on debt and
capitalized leases $ 31.0 $ 40.6 $ 150.3 $ 107.0 $ 116.5 $ 111.0 $ 110.0
Amortization of
direct financing
costs 2.2 5.5 16.1 3.7 4.1 3.1 2.2
Amortization of
discount on debt -- -- 0.1 0.1 0.5 0.5 0.4
Interest element of
rentals 0.7 0.7 3.1 2.1 1.9 1.6 1.4
Total fixed charges 33.9 46.8 169.6 112.9 123.0 116.2 114.0
Preferred stock
dividends, adjusted to a
pretax
equivalent basis 3.9 -- 9.0 -- -- -- --
Combined fixed charges
and preferred stock
dividends $ 37.8 $ 46.8 $ 178.6 $ 112.9 $ 123.0 $ 116.2 $ 114.0
Ratio of Earnings to
Fixed Charges 3.4x 2.3x 3.0x 4.0x 2.8x 2.4x 2.1x
Ratio of Earnings to
Combined Fixed Charges
and Preferred Stock
Dividend 3.0x 2.3x 2.9x 4.0x 2.8x 2.4x 2.1x
(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. "Preferred stock dividends" consist of
income before taxes that is required to pay the dividends on our outstanding
Series A mandatory convertible preferred stock.