Exhibit 12.1
STATEMENT REGARDING COMPUTATION OF RATIOS
SPEEDWAY MOTORSPORTS, INC.
ACTUAL AND PRO FORMA RATIOS OF EARNINGS TO FIXED CHARGES
| | | Year Ended December 31: | |
Actual Ratios of Earnings to Fixed Charges | | 2014 | | | 2013 | | | 2012 | | | 2011 | | | 2010 | |
| | | (in thousands) | |
Income (loss) from continuing operations before income taxes | | $ | 41,226 | | | $ | (48,563 | )(3) | | $ | 63,685 | | | $ | 17,920 | | | $ | 71,085 | |
Equity investee losses (earnings) | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | 41,226 | | | | (48,563 | ) | | | 63,685 | | | | 17,920 | | | | 71,085 | |
Fixed charges, excluding capitalized amounts: | | | | | | | | | | | | | | | | | | | | |
Interest expense, including amortization of financing costs | | | 21,771 | | | | 32,240 | | | | 41,581 | | | | 42,414 | | | | 52,513 | |
| | | | | | | | | | | | | | | | | | | | | |
Earnings as defined | | | 62,997 | | | | (16,323 | ) | | | 105,266 | | | | 60,334 | | | | 123,598 | |
| | | | | | | | | | | | | | | | | | | | | |
Fixed charges: | | | | | | | | | | | | | | | | | | | | |
Interest expense, including amortization of financing costs | | | 21,771 | | | | 32,240 | | | | 41,581 | | | | 42,414 | | | | 52,513 | |
Capitalized interest | | | 321 | | | | 168 | | | | 574 | | | | 2,286 | | | | 710 | |
| | | | | | | | | | | | | | | | | | | | | |
Fixed charges | | $ | 22,092 | | | $ | 32,408 | | | $ | 42,155 | | | $ | 44,700 | | | $ | 53,223 | |
| | | | | | | | | | | | | | | | | | | | | |
Ratio of Earnings to Fixed Charges | | 2.9x | | | N/A(1) | | | 2.5x | | | 1.3x | (4) | | 2.3x | |
Pro Forma Ratios of Earnings to Fixed Charges(2) | | Year Ended
December 31,
2014 | |
| | | (in thousands) | |
Pro forma income from continuing operations before income taxes | | $ | 45,975 | |
Equity investee losses (earnings) | | | — | |
| | | | 45,975 | |
Pro forma fixed charges, excluding capitalized amounts: | | | | |
Interest expense, including amortization of financing costs | | | 17,022 | |
Pro forma earnings as defined | | | 62,997 | |
| | | | | |
Pro forma fixed charges: | | | | |
Interest expense, including amortization of financing costs | | | 17,022 | |
Capitalized interest | | | 321 | |
| | | | | |
Pro forma interest expense, including amortization of financing costs | | $ | 17,343 | |
| | | | | |
Pro forma Ratio of Earnings to Fixed Charges | | 3.6x | |
(1) | For the year ended December 31, 2013, fixed charges exceeded earnings by approximately $48.7 million, resulting in a ratio of less than one. |
(2) | Using an effective interest rate for the Private Notes of 2.1%. |
(3) | Includes pre-tax charges of $89.0 million related to impairment of goodwill and other intangible assets and $18.5 million related to the loss on early debt redemption and refinancing. |
| | |
| (4) | Includes pre-tax charges of $48.6 million related to impairment of goodwill and other intangible assets and $7.5 million related to the loss on early debt redemption and refinancing. |
