Exhibit 12
ORIENT-EXPRESS HOTELS LTD. AND SUBSIDIARIES
Computation of Ratios of Earnings to Fixed Charges
Year ended December 31, |
| 2004 |
| 2005 |
| 2006 |
| 2007 |
| 2008 |
| |||||
|
| (Dollars in thousands, except ratios) |
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
(Loss)/earnings before income taxes |
| $ | 24,960 |
| $ | 34,327 |
| $ | 35,486 |
| $ | 49,465 |
| $ | (22,595 | ) |
|
|
|
|
|
|
|
|
|
|
|
| |||||
Earnings from unconsolidated companies excluding equity in undistributed earnings of unconsolidated companies |
| 8,165 |
| 9,752 |
| 10,700 |
| 11,807 |
| 12,608 |
| |||||
Add back dividends received |
| — |
| 624 |
| — |
| 1,763 |
| 3,840 |
| |||||
Impairments/gains on disposals |
| — |
| — |
| (6,619 | ) | (2,312 | ) | 32,715 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total (loss)/earnings before income taxes |
| $ | 33,125 |
| $ | 44,703 |
| $ | 39,567 |
| $ | 60,723 |
| $ | 26,568 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Fixed charges: |
|
|
|
|
|
|
|
|
|
|
| |||||
Interest |
| $ | 22,515 |
| $ | 31,640 |
| $ | 42,454 |
| $ | 50,232 |
| $ | 56,734 |
|
Amortization of finance costs |
| 2,276 |
| 2,845 |
| 5,580 |
| 3,243 |
| 3,103 |
| |||||
Interest on guaranteed indebtedness |
| — |
| — |
| — |
| — |
| - |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total interest |
| 24,791 |
| 34,485 |
| 48,034 |
| 53,475 |
| 59,837 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Interest factor of rent expense |
| 572 |
| 637 |
| 692 |
| 1,422 |
| 3,011 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total fixed charges |
| 25,363 |
| 35,122 |
| 48,726 |
| 54,897 |
| 62,848 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Capitalized interest |
| 1,708 |
| 448 |
| 1,735 |
| 5,619 |
| 7,628 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Fixed charges (excluding capitalized interest) |
| $ | 23,655 |
| $ | 34,674 |
| $ | 46,991 |
| $ | 49,278 |
| $ | 55,220 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Earnings before fixed charges (excluding capitalized interest) and income taxes |
| $ | 56,780 |
| $ | 79,377 |
| $ | 86,558 |
| $ | 110,001 |
| $ | 81,788 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Ratio of earnings to fixed charges |
| 2.2 |
| 2.3 |
| 1.8 |
| 2.0 |
| 1.3 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Deficiency in earnings to cover fixed charges |
| $ | — |
| $ | — |
| $ | — |
| $ | — |
| $ | — |
|