Exhibit 12
ORIENT-EXPRESS HOTELS LTD. AND SUBSIDIARIES
Computation of Ratios of Earnings to Fixed Charges
Year ended December 31, |
| 2005 |
| 2006 |
| 2007 |
| 2008 |
| 2009 |
| |||||
(Dollars in thousands, except ratios) |
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
(Loss)/earnings before income taxes |
| $ | 34,694 |
| $ | 35,515 |
| $ | 52,318 |
| $ | (13,509 | ) | $ | (12,427 | ) |
|
|
|
|
|
|
|
|
|
|
|
| |||||
Distributed interest from unconsolidated companies |
| 4,021 |
| 7,169 |
| 7,476 |
| 6,240 |
| — |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Add back dividends received |
| 624 |
| — |
| 1,763 |
| 3,840 |
| 3,790 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Impairments on equity method investment |
| — |
| — |
| — |
| 22,992 |
| — |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total earnings before income taxes |
| $ | 39,339 |
| $ | 42,684 |
| $ | 61,557 |
| $ | 19,563 |
| $ | (8,637 | ) |
|
|
|
|
|
|
|
|
|
|
|
| |||||
Fixed charges: |
|
|
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Interest |
| $ | 27,157 |
| $ | 37,064 |
| $ | 46,077 |
| $ | 53,192 |
| $ | 34,088 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Amortization of finance costs |
| 2,622 |
| 5,308 |
| 2,905 |
| 2,837 |
| 3,427 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Interest on guaranteed indebtedness |
| — |
| — |
| — |
| — |
| — |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total interest |
| 29,779 |
| 42,372 |
| 48,982 |
| 56,029 |
| 37,515 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Interest factor of rent expense |
| 582 |
| 640 |
| 1,366 |
| 2,935 |
| 2,942 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total fixed charges |
| 30,361 |
| 43,012 |
| 50,348 |
| 58,964 |
| 40,457 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Capitalized interest |
| 448 |
| 1,652 |
| 5,619 |
| 7,628 |
| 5,275 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Fixed charges (excluding capitalized interest) |
| $ | 29,913 |
| $ | 41,360 |
| $ | 44,729 |
| $ | 51,336 |
| $ | 35,182 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Earnings before fixed charges (excluding capitalized interest) and income taxes |
| $ | 69,252 |
| $ | 84,044 |
| $ | 106,286 |
| $ | 70,899 |
| $ | 26,545 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Ratio of earnings to fixed charges |
| 2.3 |
| 2.0 |
| 2.1 |
| 1.2 |
| 0.7 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Deficiency in earnings to cover fixed charges |
| $ | — |
| $ | — |
| $ | — |
| $ | — |
| $ | 8,637 |
|