Exhibit 12
Allegiant Travel Company
Computation of Ratio of Earnings to Fixed Charges
(in thousands, except for ratios)
Year Ended December 31, | Nine Months Ended September 30, | |||||||||||||||||||||||
2007 | 2008 | 2009 | 2010 | 2011 | 2012 | |||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
Income before income taxes | $ | 50,705 | $ | 55,252 | $ | 120,564 | $ | 103,332 | $ | 79,514 | $ | 101,195 | ||||||||||||
Add: Fixed charges | 6,800 | 7,153 | 6,313 | 5,007 | 9,746 | 8,374 | ||||||||||||||||||
Add: Amortization of capitalized Interest | 9 | - | - | - | - | 55 | ||||||||||||||||||
Less: Interest capitalized | - | - | - | - | 405 | 360 | ||||||||||||||||||
Less: Earnings (loss) from joint venture, net | 457 | 96 | (84 | ) | 14 | 9 | 56 | |||||||||||||||||
Less: Pre-tax net loss attributable to noncontrolling interest | - | - | - | - | - | (93 | ) | |||||||||||||||||
Total earnings | $ | 57,057 | $ | 62,309 | $ | 126,961 | $ | 108,325 | $ | 88,846 | $ | 109,301 | ||||||||||||
Fixed charges: | ||||||||||||||||||||||||
Interest expense (1) | $ | 5,523 | $ | 5,411 | $ | 4,078 | $ | 2,522 | $ | 7,175 | $ | 6,529 | ||||||||||||
Interest factor of operating lease expense (2) | 1,277 | 1,742 | 2,735 | 2,986 | 2,845 | 1,845 | ||||||||||||||||||
Total fixed charges | $ | 6,800 | $ | 7,153 | $ | 6,813 | $ | 5,508 | $ | 10,020 | $ | 8,374 | ||||||||||||
Ratio of earnings to fixed charges (3) | 8.39 | 8.71 | 18.71 | 19.76 | 8.89 | 13.05 |
(1) | Interest expense includes both expensed and capitalized, including amortization of deferred financing costs and original issue discount on debt. |
(2) | Interest factor of operating lease expense is based on an estimate which the Company considers to be a reasonable approximation. |
(3) | The ratio of earnings to fixed charges was computed by dividing earnings by fixed charges. |