Exhibit 12.1
Boyd Gaming Corporation
Computation of Ratio of Earnings to Fixed Charges
($ in thousands, except for ratios)
(unaudited)
| Six Months Ended June 30, | Years Ended December 31, | |||||||||||||||||||||||||||
| 2011 | 2010 | 2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||||||||
Earnings to Fixed Charges: | ||||||||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||||||
Income from continuing operations | $ | (14,151 | ) | $ | 30,869 | $ | 26,924 | $ | 5,317 | $ | (249,536 | ) | $ | 184,935 | $ | 246,839 | ||||||||||||
Equity earnings | — | (8,146 | ) | (8,146 | ) | (72,126 | ) | (56,356 | ) | (83,136 | ) | (86,196 | ) | |||||||||||||||
Fixed charges | 126,137 | 66,669 | 173,003 | 153,181 | 154,347 | 162,893 | 153,765 | |||||||||||||||||||||
(1) Amortization of capitalized interest | — | — | — | — | — | — | — | |||||||||||||||||||||
Distributed income of equity investees | — | 1,910 | 1,910 | 60,136 | 19,579 | 70,570 | 82,603 | |||||||||||||||||||||
Guranteed pre-tax losses of equity investees | — | — | — | — | — | — | — | |||||||||||||||||||||
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Additions | 111,986 | 91,302 | 193,691 | 146,508 | (131,966 | ) | 335,262 | 397,011 | ||||||||||||||||||||
Capitalized interest | — | — | — | 378 | 37,667 | 18,060 | 7,481 | |||||||||||||||||||||
Dividends on preferential securities | — | — | — | — | — | — | — | |||||||||||||||||||||
Noncontrolling interest in pre-tax income of subsidiaries | — | — | ||||||||||||||||||||||||||
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Subtractions | — | — | — | 378 | 37,667 | 18,060 | 7,481 | |||||||||||||||||||||
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Earnings | 111,986 | 91,302 | 193,691 | 146,130 | (169,633 | ) | 317,202 | 389,530 | ||||||||||||||||||||
Fixed Charges: | ||||||||||||||||||||||||||||
Interest expensed | 123,985 | 63,657 | 168,699 | 146,830 | 110,146 | 137,573 | 145,545 | |||||||||||||||||||||
Interest capitalized | — | — | — | 378 | 37,667 | 18,060 | 7,481 | |||||||||||||||||||||
(2) Amortization of debt issuance costs | — | — | — | — | — | — | — | |||||||||||||||||||||
(3) Interest component of rental expense | 2,152 | 3,012 | 4,304 | 5,973 | 6,534 | 7,260 | 739 | |||||||||||||||||||||
Dividend requirements on preferential securities | — | — | — | — | — | — | ||||||||||||||||||||||
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Fixed Charges | 126,137 | 66,669 | 173,003 | 153,181 | 154,347 | 162,893 | 153,765 | |||||||||||||||||||||
Ratio of earnings to fixed charges | 1.4 | x | 1.1 | x | 1.9 | x | 2.5 | x | ||||||||||||||||||||
Deficiency of earnings to fixed charges | $ | (14,151 | ) | $ | — | $ | — | $ | (7,051 | ) | $ | (323,980 | ) | $ | — | $ | — | |||||||||||
| (1) | Included in interest expense, and therefore in the fixed charge add back |
| (2) | Included in interest expense |
| (3) | Assumed to be the one-third estimate used in the indenture calculations, as all leases are operating, and don’t have a prescribed interest factor. |