Exhibit 12
Vector Group Ltd.
Ratio of Earnings to Fixed Charges
(Dollars in Thousands)
Ratio of Earnings to Fixed Charges
(Dollars in Thousands)
Pro-forma | Pro-forma | |||||||||||||||||||||||||||||||||||
Year ended December 31, | Year ended | Six months ended June 30, | Six months ended | |||||||||||||||||||||||||||||||||
2001 | 2002 | 2003 | 2004 | 2005 | December 31, 2005 | 2005 | 2006 | June 30, 2006 | ||||||||||||||||||||||||||||
Earnings as defined: | ||||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations before minority interests and income taxes | $ | 28,810 | $ | (47,774 | ) | $ | (19,774 | ) | $ | 6,106 | $ | 80,519 | $ | 75,453 | $ | 41,662 | $ | 22,496 | $ | 19,968 | ||||||||||||||||
Minority interests, as defined | 7,294 | 9,582 | 3,375 | (3,231 | ) | (3,317 | ) | (3,317 | ) | (2,984 | ) | — | — | |||||||||||||||||||||||
Distributions from non-consolidated real estate businesses | — | — | 991 | 5,840 | 5,935 | 5,935 | 1,040 | 2,195 | 2,195 | |||||||||||||||||||||||||||
Amortization of capitalized interest | — | 48 | 60 | 1,132 | 1 | 1 | — | — | — | |||||||||||||||||||||||||||
Interest expense, net of minority interests | 20,255 | 24,901 | 26,592 | 26,433 | 31,980 | 37,046 | 15,889 | 31,928 | 34,456 | |||||||||||||||||||||||||||
Loss (income) in equity of non-consolidated real estate businesses | — | 749 | (901 | ) | (9,782 | ) | (7,543 | ) | (7,543 | ) | (2,018 | ) | (7,605 | ) | (7,605 | ) | ||||||||||||||||||||
Rent expense, net of minority interests | 1,201 | 2,474 | 3,193 | 3,221 | 1,758 | 1,758 | 1,124 | 942 | 942 | |||||||||||||||||||||||||||
Total earnings | $ | 57,560 | $ | (10,020 | ) | $ | 13,536 | $ | 29,719 | $ | 109,333 | $ | 109,333 | $ | 54,713 | $ | 49,956 | $ | 49,956 | |||||||||||||||||
Fixed charges as defined: | ||||||||||||||||||||||||||||||||||||
Interest expense, net of minority interests | $ | 20,255 | $ | 24,901 | $ | 26,592 | $ | 26,433 | $ | 31,980 | $ | 37,046 | $ | 15,889 | $ | 31,928 | $ | 34,456 | ||||||||||||||||||
Capitalized interest | 779 | 345 | 117 | — | — | — | — | — | — | |||||||||||||||||||||||||||
Rent expense, net of minority interests | 1,201 | 2,474 | 3,193 | 3,221 | 1,758 | 1,758 | 1,124 | 942 | 942 | |||||||||||||||||||||||||||
Total fixed charges | $ | 22,235 | $ | 27,720 | $ | 29,902 | $ | 29,654 | $ | 33,738 | $ | 38,804 | $ | 17,013 | $ | 32,870 | $ | 35,398 | ||||||||||||||||||
Ratio of earnings to fixed charges | 2.59 | — | — | 1.00 | 3.24 | 2.82 | 3.22 | 1.52 | 1.41 | |||||||||||||||||||||||||||
Shortfall of earnings to fixed charges | $ | — | $ | 37,740 | $ | 16,366 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||