Exhibit 12.1
LAS VEGAS SANDS CORP.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in thousands)
Year Ended December 31, | Pro Forma Year Ended December 31, 2004 | Three Months Ended March 31, | Pro Forma Three Months Ended March 31, 2005 | |||||||||||||||||||||||||||||||||
2000 | 2001 | 2002(1) | 2003 | 2004 | 2004 | 2005 | ||||||||||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | $ | 16,862 | $ | 7,874 | $ | (11,844 | ) | $ | 66,634 | $ | 481,447 | $ | 131,725 | $ | 49,916 | $ | (27,187 | ) | $ | 115,348 | ||||||||||||||||
Add: Loss on Guggenheim Investment | — | 2,000 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Add, fixed charges | 134,322 | 123,698 | 129,606 | 131,418 | 146,688 | 71,220 | 34,912 | 32,109 | 21,697 | |||||||||||||||||||||||||||
Add, amortization of capitalized interest | 1,900 | 1,900 | 1,900 | 2,015 | 2,300 | 2,300 | 575 | 635 | 635 | |||||||||||||||||||||||||||
Subtract, interest capitalized | (100 | ) | (2,000 | ) | (2,600 | ) | (5,600 | ) | (4,600 | ) | (2,217 | ) | (1,200 | ) | (4,100 | ) | (4,100 | ) | ||||||||||||||||||
$ | 152,984 | $ | 133,472 | $ | 117,062 | $ | 194,467 | $ | 625,835 | $ | 203,028 | $ | 84,203 | $ | 1,457 | $ | 133,580 | |||||||||||||||||||
Fixed Charges: | ||||||||||||||||||||||||||||||||||||
Interest expense (including amortization of debt discount and issuance costs), net of capitalized interest expense | $ | 131,313 | $ | 119,007 | $ | 124,459 | $ | 122,442 | $ | 138,077 | $ | 64,992 | $ | 32,827 | $ | 27,083 | $ | 16,671 | ||||||||||||||||||
Capitalized interest expense | 100 | 2,000 | 2,600 | 5,600 | 4,600 | 2,217 | 1,200 | 4,100 | 4,100 | |||||||||||||||||||||||||||
1/3 of Lease Expense(2) | 2,909 | 2,691 | 2,547 | 3,376 | 4,011 | 4,011 | 885 | 926 | 926 | |||||||||||||||||||||||||||
$ | 134,322 | $ | 123,698 | $ | 129,606 | $ | 131,418 | $ | 146,688 | $ | 71,220 | $ | 34,912 | $ | 32,109 | $ | 21,697 | |||||||||||||||||||
Ratio of earnings to fixed charges | 1.1 | x | 1.1 | x | — | 1.5 | x | 4.3 | x | 2.9 | x | 2.4 | x | — | 6.2 | x | ||||||||||||||||||||
(1) | For the year ended December 31, 2002 and for the three months ended March 31, 2005, earnings were insufficient to cover fixed charges by $12,544 and $30,652, respectively. Accordingly, such ratios have not been presented. |
(2) | The interest factor represents one-third of lease expense, which management believes is representative of the interest component of lease expense. |