EXHIBIT 12.1
Ratio of Earnings to Fixed Charges
Herbst Gaming, Inc.(1)
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| 2003 |
| 2004 |
| 2005 |
| 2006 |
| 2007 |
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Income from continuing operations before income taxes(2) (3) (4) |
| $ | 8,209 |
| $ | 29,222 |
| $ | 51,053 |
| 42,060 |
| (38,120 | ) | ||
Add: |
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Interest expense |
| 24,525 |
| 22,109 |
| 36,532 |
| 39,134 |
| 93,952 |
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Interest component of rent expenses |
| 611 |
| 658 |
| 807 |
| 699 |
| 2,647 |
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Earnings available for fixed charges |
| $ | 33,345 |
| $ | 51,989 |
| $ | 88,392 |
| $ | 81,893 |
| $ | 52,923 |
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Fixed Charges: |
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Interest expense |
| $ | 24,525 |
| $ | 22,109 |
| $ | 36,532 |
| 39,134 |
| 93,952 |
| ||
Interest capitalized |
| — |
| — |
| 101 |
| 873 |
| 206 |
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Interest component of rent expense |
| 611 |
| 658 |
| 807 |
| 699 |
| 2,647 |
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Total fixed charges |
| $ | 25,136 |
| $ | 22,767 |
| $ | 37,440 |
| $ | 40,706 |
| $ | 96,805 |
|
Ratio of earnings to fixed charges |
| 1.3 |
| 2.3 |
| 2.4 |
| 2.0 |
| 0.5 |
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(1) For purposes of determining the ratio of earnings to fixed charges, earnings are defined as earnings before fixed charges and loss on early retirement of debt (other than capitalized interest). Fixed charges consist of interest expensed and capitalized and the interest component of rent expense.
(2) Includes add back of early retirement of debt charges of $37,991 for the year ending December 31, 2004.
(3) Includes add back of early retirement of debt charges of $221 for the year ending December 31, 2005.
(4) Includes add back of $72,965 in noncash impairment of intangibles and $16,100 due to the termination of an interest rate hedge.
