Exhibit 12
Pinnacle Entertainment, Inc.
Computation of Ratio of Earnings to Fixed Charges
|
| | | | | | | | | | | | | | | | | | | |
| | For the year ended December 31, |
| | 2012 | | 2013 | | 2014 | | 2015 | | 2016 |
| | | | | | | | | | |
| | (in thousands) |
| Earnings: | | | | | | | | | |
| Pre-tax income (loss) from continuing operations before losses from equity method investments | $ | 22,307 |
| | $ | (96,254 | ) | | $ | 49,592 |
| | $ | 56,758 |
| | $ | (485,825 | ) |
| Add: Fixed charges | 119,425 |
| | 178,723 |
| | 261,623 |
| | 250,313 |
| | 342,346 |
|
| Less: Capitalized interest | (20,310 | ) | | (3,282 | ) | | (2,854 | ) | | — |
| | (105 | ) |
| Total earnings | $ | 121,422 |
| | $ | 79,187 |
| | $ | 308,361 |
| | $ | 307,071 |
| | $ | (143,584 | ) |
| | | | | | | | | | |
| Fixed charges: | | | | | | | | | |
| Interest expense, net of capitalized interest and inclusive of amortization of debt issuance costs and debt discount/premium | $ | 94,484 |
| | $ | 170,218 |
| | $ | 253,048 |
| | $ | 244,708 |
| | $ | 334,777 |
|
| Capitalized interest | 20,310 |
| | 3,282 |
| | 2,854 |
| | — |
| | 105 |
|
| Estimated interest portion of rent expense | 4,631 |
| | 5,223 |
| | 5,721 |
| | 5,605 |
| | 7,464 |
|
| Total fixed charges | $ | 119,425 |
| | $ | 178,723 |
| | $ | 261,623 |
| | $ | 250,313 |
| | $ | 342,346 |
|
| Ratio of earnings to fixed charges | 1.0x |
| | (a) |
| | 1.2x |
| | 1.2x |
| | (a) |
|
| |
| (a) | Due principally to large non-cash charges deducted to compute earnings, earnings were less than fixed charges by $99.5 million and $485.9 million for the years ended December 31, 2013 and 2016, respectively. |
