Exhibit 12.1
Ratio of Earnings to Fixed Charges
Exhibit 12.1
Echostar DBS Corporation
Ratio of Earnings to Fixed Charges
(in thousands)
| For the Six Months | ||||||||||||||||||||||||||||||
| Ended June 30, | ||||||||||||||||||||||||||||||
| For the Years Ended December 31, | (unaudited) | |||||||||||||||||||||||||||||
| 2001 | 2002 | 2003 | 2004 | 2005 | 2005 | 2006 | ||||||||||||||||||||||||
| Income (loss) before taxes | $ | 32,497 | $ | 127,832 | $ | 333,114 | $ | 310,478 | $ | 1,029,339 | $ | 622,713 | $ | 460,047 | ||||||||||||||||
| Interest expense (net of amounts capitalized) | 192,900 | 338,883 | 407,030 | 433,364 | 305,265 | 149,494 | 207,794 | |||||||||||||||||||||||
| Amortization of capitalized interest (estimate) | 10,708 | 12,395 | 14,455 | 11,052 | 11,052 | 5,526 | 5,766 | |||||||||||||||||||||||
| Interest component of rent expense(1) | 700 | 904 | 1,515 | 2,110 | 2,328 | 628 | 613 | |||||||||||||||||||||||
| Earnings before fixed charges | $ | 236,805 | $ | 480,014 | $ | 756,114 | $ | 757,004 | $ | 1,347,984 | $ | 778,361 | $ | 674,220 | ||||||||||||||||
| Interest expense (net of amounts capitalized) | $ | 192,900 | $ | 338,883 | $ | 407,030 | $ | 433,364 | $ | 305,265 | $ | 149,494 | $ | 207,794 | ||||||||||||||||
| Capitalized interest | — | 23,876 | 8,428 | — | — | — | — | |||||||||||||||||||||||
| Interest component of rent expense(1) | 700 | 904 | 1,515 | 2,110 | 2,328 | 628 | 613 | |||||||||||||||||||||||
| Total fixed charges | $ | 193,600 | $ | 363,663 | $ | 416,973 | $ | 435,474 | $ | 307,593 | $ | 150,122 | $ | 208,407 | ||||||||||||||||
| Ratio of earnings to fixed charges | 1.22 | 1.32 | 1.81 | 1.74 | 4.38 | 5.18 | 3.24 | |||||||||||||||||||||||
| (1) | The interest component of rent expense has been estimated by taking the difference between our gross rent expense and the net present value of our rent expense using the weighted average cost of debt for our senior notes during each respective period. The rates applied are approximately 9% for the years ended December 31, 2001 and 2003; 10% for the year ended December 31, 2002, and 7% for the years ended December 31, 2004 and 2005 and the six months ended June 30, 2005 and 2006. |