Exhibit 12.1
Vector Group Ltd.
Ratio of Earnings to Fixed Charges
(Dollars in Thousands)
Ratio of Earnings to Fixed Charges
(Dollars in Thousands)
Pro-forma | ||||||||||||||||||||||||||
Year ended | ||||||||||||||||||||||||||
Year ended December 31, | December 31, | |||||||||||||||||||||||||
2003 | 2004 | 2005 | 2006 | 2007 | 2007 | |||||||||||||||||||||
Earnings as defined: | ||||||||||||||||||||||||||
Income (loss) from continuing operations before minority interests and income taxes | $ | (19,774 | ) | $ | 6,627 | $ | 85,768 | $ | 68,480 | $ | 126,603 | $ | 118,905 | |||||||||||||
Minority interests, as defined | 3,375 | (3,231 | ) | (3,317 | ) | — | — | — | ||||||||||||||||||
Minority Interest of fixed charges | ||||||||||||||||||||||||||
Distributions from non-consolidated real estate businesses | 991 | 5,840 | 5,935 | 7,311 | 9,878 | 9,878 | ||||||||||||||||||||
Amortization of capitalized interest | 60 | 1,132 | 1 | 1 | 1 | 1 | ||||||||||||||||||||
Interest expense, net of minority interests(1) | 26,592 | 24,556 | 26,730 | 37,664 | 51,871 | 64,346 | ||||||||||||||||||||
Loss (income) in equity of non-consolidated real estate businesses | (901 | ) | (9,782 | ) | (7,543 | ) | (9,086 | ) | (16,243 | ) | (16,243 | ) | ||||||||||||||
Rent expense, net of minority interests | 3,193 | 3,221 | 1,758 | 1,502 | 1,309 | 1,309 | ||||||||||||||||||||
Total earnings | $ | 13,536 | $ | 28,363 | $ | 109,332 | $ | 105,872 | $ | 173,419 | $ | 178,196 | ||||||||||||||
Fixed charges as defined: | ||||||||||||||||||||||||||
Interest expense | $ | 26,592 | $ | 24,556 | $ | 26,730 | $ | 37,664 | $ | 51,871 | $ | 64,346 | ||||||||||||||
Capitalized interest | 117 | — | — | — | — | — | ||||||||||||||||||||
Rent expense | 3,193 | 3,221 | 1,758 | 1,502 | 1,309 | 1,309 | ||||||||||||||||||||
Total fixed charges | $ | 29,902 | $ | 27,777 | $ | 28,488 | $ | 39,166 | $ | 53,180 | $ | 65,655 | ||||||||||||||
Ratio of earnings to fixed charges (2) | — | 1.02 | 3.84 | 2.70 | 3.26 | 2.71 | ||||||||||||||||||||
(1) | Interest expense includes changes in the fair value of derivatives embedded within convertible debt. |
(2) | For the year ended December 31, 2003, earnings were insufficient to cover fixed charges as evidenced by a less than one-to-one coverage ratio. Additional earnings of approximately $16,366 were necessary for the year ended December 31, 2003. |