Exhibit 12.1
MOHEGAN TRIBAL GAMING AUTHORITY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
| | | Fiscal Year Ended September 30,
| | For the Nine Months
Ended June 30,
| |
| | | 2002
| | | 2001
| | | 2000
| | | 1999
| | | 1998
| | 2003
| | | 2002
| |
Income (loss) from continuing operations | | $ | 100,032 | | | $ | 214,532 | | | $ | 146,608 | | | $ | (38,108 | ) | | $ | 87,816 | | $ | 65,100 | | | $ | 49,495 | |
Amortization of capitalized interest | | | 2,730 | | | | 757 | | | | 757 | | | | 757 | | | | 757 | | | 3,044 | | | | 1,715 | |
Fixed charges | | | 127,670 | | | | 93,477 | | | | 74,926 | | | | 81,417 | | | | 52,020 | | | 92,630 | | | | 92,892 | |
Capitalized interest | | | (12,353 | ) | | | (40,715 | ) | | | (9,880 | ) | | | (534 | ) | | | — | | | — | | | | (12,353 | ) |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
|
|
| |
|
|
|
Earnings | | $ | 218,079 | | | $ | 268,051 | | | $ | 212,411 | | | $ | 43,532 | | | $ | 140,593 | | $ | 160,774 | | | $ | 131,749 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
|
|
| |
|
|
|
Interest expense on debt | | $ | 71,579 | (A) | | $ | 11,755 | (A) | | $ | 37,799 | | | $ | 55,595 | | | $ | 50,172 | | $ | 61,959 | (A) | | $ | 48,458 | (A) |
Capitalized interest | | | 12,353 | | | | 40,715 | | | | 9,880 | | | | 534 | | | | — | | | — | | | | 12,353 | |
Accretion of discount to the relinquishment liability | | | 36,333 | | | | 35,833 | | | | 23,053 | | | | 22,014 | | | | — | | | 25,194 | | | | 27,250 | |
Amortization of debt issuance costs | | | 6,602 | | | | 4,536 | | | | 3,225 | | | | 2,313 | | | | 883 | | | 4,847 | | | | 4,213 | |
Interest portion of rental expense (B) | | | 803 | | | | 638 | | | | 969 | | | | 961 | | | | 965 | | | 630 | | | | 618 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
|
|
| |
|
|
|
Total fixed charges | | $ | 127,670 | | | $ | 93,477 | | | $ | 74,926 | | | $ | 81,417 | | | $ | 52,020 | | $ | 92,630 | | | $ | 92,892 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
|
|
| |
|
|
|
Ratio of earnings to fixed charges | | | 1.71 | | | | 2.87 | | | | 2.83 | | | | — | (C) | | | 2.70 | | | 1.74 | | | | 1.42 | |
| | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
|
|
| |
|
|
|
| (A) | | Interest expense on debt excludes as a fixed charge the effects of changes in fair value of derivative instruments of ($1.5) million and $4.1 million for the fiscal years ended September 30, 2002 and 2001, and ($3.0) million and ($1.0) million for the nine months ended June 30, 2003 and 2002, respectively. |
| (B) | | A factor of 10% was used to calculate the interest portion of rental expense, which we believe to be a reasonable approximation. |
| (C) | | For the fiscal year ended September 30, 1999, earnings were inadequate to cover fixed charges. The deficiency of earnings available to cover fixed charges was $37.9 million. |
