Exhibit 12
Pinnacle Entertainment, Inc.
Computation of Ratio of Earnings to Fixed Charges
For the year ended December 31, | |||||||||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | |||||||||||||||
(in thousands) | |||||||||||||||||||
Earnings: | |||||||||||||||||||
Pre-tax income (loss) from continuing operations before losses from equity method investments | $ | (96,254 | ) | $ | 49,592 | $ | 56,758 | $ | (485,825 | ) | $ | 47,245 | |||||||
Add: Fixed charges | 178,723 | 261,623 | 250,313 | 342,346 | 392,312 | ||||||||||||||
Less: Capitalized interest | (3,282 | ) | (2,854 | ) | — | (105 | ) | (64 | ) | ||||||||||
Total earnings | $ | 79,187 | $ | 308,361 | $ | 307,071 | $ | (143,584 | ) | $ | 439,493 | ||||||||
Fixed charges: | |||||||||||||||||||
Interest expense, net of capitalized interest (a) | $ | 170,218 | $ | 253,048 | $ | 244,708 | $ | 334,777 | $ | 381,349 | |||||||||
Capitalized interest | 3,282 | 2,854 | — | 105 | 64 | ||||||||||||||
Estimated interest portion of rent expense | 5,223 | 5,721 | 5,605 | 7,464 | 10,899 | ||||||||||||||
Total fixed charges | $ | 178,723 | $ | 261,623 | $ | 250,313 | $ | 342,346 | $ | 392,312 | |||||||||
Ratio of earnings to fixed charges | (b) | 1.2x | 1.2x | (b) | 1.1x |
(a) | Inclusive of amortization of debt issuance costs and debt discounts/premiums and exclusive of interest income. |
(b) | 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. |