Exhibit 12.1
MOHEGAN TRIBAL GAMING AUTHORITY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
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| | | Fiscal Year Ended September 30,
| | | For the Nine Months Ended June 30,
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| | | 2003
| | | 2002
| | | 2001
| | | 2000
| | | 1999
| | | 2004
| | 2003
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Income (loss) from continuing operations | | $ | 95,685 | | | $ | 100,032 | | | $ | 214,532 | | | $ | 146,608 | | | $ | (38,108 | ) | | $ | 93,636 | | $ | 65,100 | |
Amortization of capitalized interest | | | 4,059 | | | | 2,730 | | | | 757 | | | | 757 | | | | 757 | | | | 2,974 | | | 3,044 | |
Fixed charges | | | 120,939 | | | | 127,378 | | | | 93,476 | | | | 74,926 | | | | 81,417 | | | | 83,062 | | | 92,630 | |
Capitalized interest | | | — | | | | (12,353 | ) | | | (40,715 | ) | | | (9,880 | ) | | | (534 | ) | | | — | | | — | |
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Earnings | | $ | 220,683 | | | $ | 217,787 | | | $ | 268,050 | | | $ | 212,411 | | | $ | 43,532 | | | $ | 179,672 | | $ | 160,774 | |
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Interest expense on debt | | $ | 79,799 | (A) | | $ | 71,287 | (A) | | $ | 11,754 | (A) | | $ | 37,799 | | | $ | 55,595 | | | $ | 55,222 | | $ | 61,959 | (A) |
Capitalized interest | | | — | | | | 12,353 | | | | 40,715 | | | | 9,880 | | | | 534 | | | | — | | | — | |
Accretion of discount to the relinquishment liability | | | 33,592 | | | | 36,333 | | | | 35,833 | | | | 23,053 | | | | 22,014 | | | | 22,455 | | | 25,194 | |
Amortization of debt issuance costs | | | 6,687 | | | | 6,602 | | | | 4,536 | | | | 3,225 | | | | 2,313 | | | | 4,854 | | | 4,847 | |
Interest portion of rental expense (B) | | | 861 | | | | 803 | | | | 638 | | | | 969 | | | | 961 | | | | 531 | | | 630 | |
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Total fixed charges | | $ | 120,939 | | | $ | 127,378 | | | $ | 93,476 | | | $ | 74,926 | | | $ | 81,417 | | | $ | 83,062 | | $ | 92,630 | |
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Ratio of earnings to fixed charges | | | 1.82 | | | | 1.71 | | | | 2.87 | | | | 2.83 | | | | — | (C) | | | 2.16 | | | 1.74 | |
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| (A) | Interest expense on debt excludes as a fixed charge the effects of changes in fair value of derivative instruments of ($3.0) million, ($1.3) million and $4.1 million for the fiscal years ended September 30, 2003, 2002, and 2001, respectively, and ($3.0) million for the nine months ended June 30, 2003. |
| (B) | A factor of 10% was used to calculate 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. |
