EXHIBIT 12
THE PROMUS COMPANIES INCORPORATED
COMPUTATIONS OF RATIOS
(IN THOUSANDS, EXCEPT RATIO AMOUNTS)
FISCAL YEAR
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1993 1992 1991 1990
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RETURN ON REVENUES-CONTINUING
Income from continuing operations.......... $ 91,793 $ 51,418 $ 30,011 $ 23,353
Revenues................................... 1,251,855 1,113,066 1,031,112 1,004,206
Return.................................. 7.3% 4.6% 2.9% 2.3%
RETURN ON AVERAGE INVESTED CAPITAL
Income from continuing operations.......... $ 91,793 $ 51,418 $ 30,011 $ 23,353
Add: Interest expense after tax............ 60,633 74,518 84,415 74,705
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$ 152,426 $ 125,936 $ 114,426 $ 98,058
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Average invested capital................... $ 1,444,747 $ 1,361,793 $ 1,262,939 $ 1,257,902
Return.................................. 10.6% 9.2% 9.1% 7.8%
RETURN ON AVERAGE EQUITY
Income from continuing operations.......... $ 91,793 $ 51,418 $ 30,011 $ 23,353
Average equity............................. 474,733 395,212 289,361 231,550
Return.................................. 19.3% 13.0% 10.4% 10.1%
RATIO OF EARNINGS TO FIXED CHARGES
Income from continuing operations.......... $ 91,793 $ 51,418 $ 30,011 $ 23,353
Add/(less)
Provision for income taxes.............. 73,262 36,881 22,183 20,710
Interest expense........................ 106,232 118,278 130,796 117,636
Interest included in rental expense..... 7,207 4,891 5,446 5,117
Amortization of capitalized interest.... 892 790 2,233 718
Dividends received from equity
investments........................... 441
(Income) or loss from equity
investments........................... (1,585) (628) 418 1,171
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Earnings as defined................ $ 278,242 $ 211,630 $ 191,087 $ 168,705
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Interest expense........................... $ 106,232 $ 118,278 $ 130,796 $ 117,636
Capitalized interest....................... 3,127 2,379 3,014 10,612
Interest included in rental expense........ 7,207 4,891 5,446 5,117
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Total fixed charges................ $ 116,566 $ 125,548 $ 139,256 $ 133,365
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Ratio of earnings to fixed charges...... 2.4 1.7 1.4 1.3
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EXHIBIT 12 (CONTINUED)
THE PROMUS COMPANIES INCORPORATED
COMPUTATIONS OF RATIOS
(IN THOUSANDS, EXCEPT RATIO AMOUNTS)
FISCAL YEAR
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1993 1992 1991 1990
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CURRENT RATIO
Current assets............................. $ 163,558 $ 137,147 $ 117,351 $ 110,319
Current liabilities........................ 252,004 157,283 221,814 204,013
Ratio................................... 0.6 0.9 0.5 0.5
RATIO OF BOOK EQUITY TO DEBT
Book equity as of fiscal year-end.......... $ 536,037 $ 427,930 $ 375,035 $ 213,289
Total debt................................. 841,964 881,325 887,468 956,947
Ratio................................... 0.6 0.5 0.4 0.2
RATIO OF MARKET EQUITY TO DEBT
Market equity as of fiscal year-end........ $ 4,678,304 $ 1,867,828 $ 743,369 $ 399,795
Total debt................................. 841,964 881,325 887,468 956,947
Ratio................................... 5.6 2.1 0.8 0.4
RATIO OF EBITDA TO INTEREST PAID
Income before extraordinary items.......... $ 91,793 $ 51,418 $ 30,011 $ 23,353
Add/(less)
Income tax provision.................... 73,262 36,881 22,183 20,710
Interest expense........................ 106,561 118,282 133,992 118,580
Interest expense of nonconsolidated
affiliates............................ (12,707) (14,395) (19,122) (15,833)
Depreciation and amortization........... 98,095 92,342 88,073 82,073
Deferred finance charge amortization.... (4,107) (5,863) (6,704) (5,855)
Amortization of debt discounts and
premiums.............................. (1,041) (1,661) (649) 153
Net losses of and distributions from
nonconsolidated affiliates............ 2,782 6,452 13,431 12,713
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Earnings before interest, taxes,
depreciation and amortization... $ 354,638 $ 283,456 $ 261,215 $ 235,894
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Interest expense........................... $ 106,561 $ 118,282 $ 133,992 $ 118,580
Add/(less)
Interest expense of nonconsolidated
affiliates............................ (12,707) (14,395) (19,122) (15,833)
Deferred finance charge amortization.... (4,107) (5,863) (6,704) (5,855)
Amortization of debt discounts and
premiums.............................. (1,041) (1,661) (649) 153
Capitalized interest.................... 3,127 2,379 3,014 10,612
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Interest paid...................... $ 91,833 $ 98,742 $ 110,531 $ 107,657
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Ratio of EBITDA to interest paid........ 3.9 2.9 2.4 2.2
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EXHIBIT 12 (CONTINUED)
THE PROMUS COMPANIES INCORPORATED
COMPUTATIONS OF RATIOS
(IN THOUSANDS, EXCEPT RATIO AMOUNTS)
FISCAL YEAR
----------------------------------------------------------
1993 1992 1991 1990
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RATIO OF DEBT TO EBITDA
Total debt................................. $ 841,964 $ 881,325 $ 887,468 $ 956,947
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Income before extraordinary items.......... $ 91,793 $ 51,418 $ 30,011 $ 23,353
Add/(less)
Income tax provision.................... 73,262 36,881 22,183 20,710
Interest expense........................ 106,561 118,282 133,992 118,580
Interest expense of nonconsolidated
affiliates............................ (12,707) (14,395) (19,122) (15,833)
Depreciation and amortization........... 98,095 92,342 88,073 82,073
Deferred finance charge amortization.... (4,107) (5,863) (6,704) (5,855)
Amortization of debt discounts and
premiums.............................. (1,041) (1,661) (649) 153
Net losses of and distributions from
nonconsolidated affiliates............ 2,782 6,452 13,431 12,713
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Earnings before interest, taxes,
depreciation and amortization... $ 354,638 $ 283,456 $ 261,215 $ 235,894
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Ratio of debt to EBITDA...................... 2.4 3.1 3.4 4.1
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