Exhibit 12.1
KERZNER INTERNATIONAL LIMITED
CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In Thousands of US Dollars)
| | For the years ended December 31, | | For the nine
months ended
September 30, | |
| | 2000(1) | | 2001 | | 2002 | | 2003 | | 2004 | | 2005 | |
Income (loss) from continuing operations before provision for income taxes and minority interest | | $ | (109,134 | ) | $ | 38,359 | | $ | 47,760 | | $ | 71,769 | | $ | 61,322 | | $ | 21,016 | |
Fixed charges | | 58,713 | | 63,881 | | 41,728 | | 32,059 | | 45,266 | | 43,134 | |
Amortization of capitalized interest | | 1,579 | | 1,948 | | 1,985 | | 1,993 | | 2,066 | | 1,650 | |
Distributed income of equity investees | | 18,590 | | 20,036 | | 30,258 | | 21,864 | | 36,974 | | 33,239 | |
Less: Equity earnings in equity investees | | (23,733 | ) | (26,473 | ) | (24,832 | ) | (33,640 | ) | (43,364 | ) | (43,494 | ) |
Less: Capitalized interest | | (11,072 | ) | (1,099 | ) | (237 | ) | (433 | ) | (5,806 | ) | (8,355 | ) |
Less: Minority interest that have not incurred fixed charges | | — | | — | | — | | (1,340 | ) | 7,234 | | 6,561 | |
| | | | | | | | | | | | | |
Earnings available for fixed charges | | $ | (65,057 | ) | $ | 96,652 | | $ | 96,662 | | $ | 92,272 | | $ | 103,692 | | $ | 53,751 | |
| | | | | | | | | | | | | |
Interest expense and amortization of debt issuance costs, discounts and premiums | | $ | 45,678 | | $ | 60,375 | | $ | 39,104 | | $ | 29,264 | | $ | 36,814 | | $ | 32,582 | |
Capitalized interest | | 11,072 | | 1,099 | | 237 | | 433 | | 5,806 | | 8,355 | |
Interest component of rentals(2) | | 1,963 | | 2,407 | | 2,387 | | 2,362 | | 2,646 | | 2,197 | |
| | | | | | | | | | | | | |
Total fixed charges | | $ | 58,713 | | $ | 63,881 | | $ | 41,728 | | $ | 32,059 | | $ | 45,266 | | $ | 43,134 | |
| | | | | | | | | | | | | |
Ratio of earnings to fixed charges | | — | | 1.51 | | 2.32 | | 2.88 | | 2.29 | | 1.25 | |
(1) Earnings were insufficient to cover fixed charges by $123,770 for the year ended December 31, 2000.
(2) The Company estimates the interest components of rentals to be 0.33.
