Exhibit 12
Pinnacle Entertainment, Inc.
Computation of Ratio of Earnings to Fixed Charges
| For the year ended December 31, | ||||||||||||||||||||
| 2007 | 2008 | 2009 | 2010 | 2011 | ||||||||||||||||
| (in thousands) | ||||||||||||||||||||
Earnings: | ||||||||||||||||||||
Pre-tax income (loss) from continuing operations, before equity method investment earnings | $ | 10,891 | $ | (153,456 | ) | $ | (63,335 | ) | $ | (52,534 | ) | $ | 33,119 | |||||||
Add: Fixed charges | 71,710 | 81,645 | 88,005 | 111,811 | 110,805 | |||||||||||||||
Less: Capitalized interest | (22,935 | ) | (24,877 | ) | (13,758 | ) | (4,041 | ) | (10,303 | ) | ||||||||||
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Total Earnings | $ | 59,666 | $ | (96,688 | ) | $ | 10,912 | $ | 55,236 | $ | 133,621 | |||||||||
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Fixed Charges: | ||||||||||||||||||||
Interest expense, net of capitalized interest and inclusive of amortization of debt issuance costs | $ | 45,288 | $ | 52,476 | $ | 70,335 | $ | 103,093 | $ | 95,705 | ||||||||||
Capitalized interest | 22,935 | 24,877 | 13,758 | 4,041 | 10,303 | |||||||||||||||
Estimated interest portion of rent expense | 3,487 | 4,292 | 3,912 | 4,677 | 4,797 | |||||||||||||||
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Total fixed charges | 71,710 | 81,645 | 88,005 | 111,811 | 110,805 | |||||||||||||||
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Ratio of earnings to fixed charges | — | — | — | — | 1.21x | |||||||||||||||
