Exhibit 12.1
MOHEGAN TRIBAL GAMING AUTHORITY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Fiscal Year Ended September 30, | For the Nine Months Ended June 30, | ||||||||||||||||||||||||||
2002 | 2001 | 2000 | 1999 | 1998 | 2003 | 2002 | |||||||||||||||||||||
Income (loss) from continuing operations | $ | 100,032 | $ | 214,532 | $ | 146,608 | $ | (38,108 | ) | $ | 87,816 | $ | 65,100 | $ | 49,495 | ||||||||||||
Amortization of capitalized interest | 2,730 | 757 | 757 | 757 | 757 | 3,044 | 1,715 | ||||||||||||||||||||
Fixed charges | 127,670 | 93,477 | 74,926 | 81,417 | 52,020 | 92,630 | 92,892 | ||||||||||||||||||||
Capitalized interest | (12,353 | ) | (40,715 | ) | (9,880 | ) | (534 | ) | — | — | (12,353 | ) | |||||||||||||||
Earnings | $ | 218,079 | $ | 268,051 | $ | 212,411 | $ | 43,532 | $ | 140,593 | $ | 160,774 | $ | 131,749 | |||||||||||||
Interest expense on debt | $ | 71,579 | (A) | $ | 11,755 | (A) | $ | 37,799 | $ | 55,595 | $ | 50,172 | $ | 61,959 | (A) | $ | 48,458 | (A) | |||||||||
Capitalized interest | 12,353 | 40,715 | 9,880 | 534 | — | — | 12,353 | ||||||||||||||||||||
Accretion of discount to the relinquishment liability | 36,333 | 35,833 | 23,053 | 22,014 | — | 25,194 | 27,250 | ||||||||||||||||||||
Amortization of debt issuance costs | 6,602 | 4,536 | 3,225 | 2,313 | 883 | 4,847 | 4,213 | ||||||||||||||||||||
Interest portion of rental expense (B) | 803 | 638 | 969 | 961 | 965 | 630 | 618 | ||||||||||||||||||||
Total fixed charges | $ | 127,670 | $ | 93,477 | $ | 74,926 | $ | 81,417 | $ | 52,020 | $ | 92,630 | $ | 92,892 | |||||||||||||
Ratio of earnings to fixed charges | 1.71 | 2.87 | 2.83 | — | (C) | 2.70 | 1.74 | 1.42 | |||||||||||||||||||
(A) | Interest expense on debt excludes as a fixed charge the effects of changes in fair value of derivative instruments of ($1.5) million and $4.1 million for the fiscal years ended September 30, 2002 and 2001, and ($3.0) million and ($1.0) million for the nine months ended June 30, 2003 and 2002, respectively. |
(B) | A factor of 10% was used to calculate the interest portion of rental expense, which we believe to be a reasonable approximation. |
(C) | For the fiscal year ended September 30, 1999, earnings were inadequate to cover fixed charges. The deficiency of earnings available to cover fixed charges was $37.9 million. |