Exhibit 12
Pinnacle Entertainment, Inc.
Computation of Ratio of Earnings to Fixed Charges
Computation of Ratio of Earnings to Fixed Charges
| 2004 | 2005 | 2006 | 2007 | 2008 | ||||||||||||||||
| (in thousands) | ||||||||||||||||||||
| Earnings: | ||||||||||||||||||||
| Pre-tax income (loss) | $ | 6,079 | $ | (17,350 | ) | $ | 102,909 | $ | (1,851 | ) | $ | (424,741 | ) | |||||||
| Add fixed charges | 60,789 | 62,385 | 62,023 | 72,339 | 82,521 | |||||||||||||||
| Less capitalized interest | (5,102 | ) | (7,130 | ) | (5,750 | ) | (42,851 | ) | (25,144 | ) | ||||||||||
| Total earnings | $ | 61,766 | $ | 37,905 | $ | 159,182 | $ | 27,637 | $ | (367,364 | ) | |||||||||
| Fixed charges | ||||||||||||||||||||
| Interest expense — inclusive of the amortization of debt issuance costs | $ | 51,778 | $ | 49,535 | $ | 53,678 | $ | 25,715 | $ | 53,049 | ||||||||||
| Capitalized interest | 5,102 | 7,130 | 5,750 | 42,851 | 25,144 | |||||||||||||||
| Estimated interest portion of rent expense | 3,909 | 5,720 | 2,595 | 3,773 | 4,328 | |||||||||||||||
| Total fixed charges | $ | 60,789 | $ | 62,385 | $ | 62,023 | $ | 72,339 | $ | 82,521 | ||||||||||
| Ratio of earnings to fixed charges | 1.02 | x | 0.61 | x | 2.57 | x | 0.38 | x | $ | (4.45) | x | |||||||||