Exhibit 12.1
Statement Regarding Computations of Ratios
For the purpose of determining the ratio of earnings to fixed charges,
"earnings" consist of earnings before income tax expense plus fixed
charges. "Fixed charges" consist of interest expense, including
amortization of deferred financing costs, plus estimated interest on rental
expense, and are computed as follows:
Pro Forma
Ratio (1)
Black Hawk 1997 1998 1999 2000 2001 2001
- ---------- ------ ------- ------- ------- ------- ---------
Earnings:
Pre-tax income from continuing operations......................... $ (122) $ 4,518 $10,120 $10,496 $ 9,316 $ 9,316
Add: Fixed charges................................................ 566 4,297 5,221 4,212 6,280 8,362
Add: Amortization of capitalized interest......................... 9 35 58 58 58 58
Add: Distributed income of equity investment...................... 1,259 1,168 -- -- -- --
Less: Interest capitalized........................................ (548) (1,333) -- -- -- --
------ ------- ------- ------- ------- -------
Total earnings....................................................... $1,164 $ 8,685 $15,399 $14,766 $15,654 $17,736
====== ======= ======= ======= ======= =======
Fixed Charges:
Interest expense.................................................. $ -- $ 2,743 $ 4,586 $ 3,424 $ 5,271 $ 7,354
Interest capitalized.............................................. 548 1,333 -- -- -- --
Amortization of capitalized expenses related to indebtedness...... -- 202 617 770 709 709
Estimated interest on rental expense.............................. 18 18 18 18 300 300
------ ------- ------- ------- ------- -------
Total fixed charges.................................................. $ 566 $ 4,298 $ 5,221 $ 4,212 $ 6,280 $ 8,363
====== ======= ======= ======= ======= =======
Ratio of earnings to fixed charges................................ 2.06 2.02 2.95 3.51 2.49 2.12
- --------
(1) The pro forma ratio assumes interest expense based on $58,800,000 of Black
Hawk Gaming debt at the interest rate applicable under the terms of the New
Notes (11 7/8%)
Diversified
1997 1998 1999 2000 2001
------- ------ ------ ------ ------
Earnings:
Pre-tax income from continuing operations.......................... $ 92 $1,276 $3,813 $2,455 $3,537
Add: Fixed charges................................................. 1,638 3,890 3,925 3,937 4,005
Add: Amortization of capitalized interest.......................... 10 12 32 32 32
Add: Distributed income of equity investment
Less: Interest capitalized......................................... (1,068) (147)
------- ------ ------ ------ ------
Total earnings......................................................... $ 672 $5,031 $7,770 $6,424 $7,574
======= ====== ====== ====== ======
Fixed Charges:
Interest expense................................................... $ 278 $2,929 $3,161 $3,250 $3,452
Interest capitalized............................................... 1,068 147
Amortization of capitalized expenses related to indebtedness....... 145 159 28 5
Estimated interest on rental expense............................... 292 669 605 659 548
------- ------ ------ ------ ------
Total fixed charges.................................................... $ 1,638 $3,890 $3,925 $3,937 $4,005
======= ====== ====== ====== ======
Ratio of Earnings to fixed charges..................................... .41x 1.30x 1.98x 1.63x 1.89x