EXHIBIT 12
THE PROMUS COMPANIES INCORPORATED
COMPUTATIONS OF RATIOS
(IN THOUSANDS, EXCEPT RATIO AMOUNTS)
FISCAL YEAR
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1994 1993 1992 1991 1990
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RETURN ON REVENUES-CONTINUING
Income from continuing
operations.................. $ 49,984 $ 74,867 $ 49,577 $ 34,499 $ 30,707
Revenues...................... 1,339,406 1,020,645 894,384 863,385 875,335
Return...................... 3.7% 7.3% 5.5% 4.0% 3.5%
RETURN ON AVERAGE INVESTED
CAPITAL
Income from continuing
operations.................. $ 49,984 $ 74,867 $ 49,577 $ 34,499 $ 30,707
Add: Interest expense after
tax......................... 46,993 43,848 46,543 55,301 52,958
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$ 96,977 $ 118,715 $ 96,120 $ 89,800 $ 83,665
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Average invested capital...... $1,391,289 $1,257,017 $1,110,959 $1,013,785 $914,793
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Return...................... 7.0% 9.4% 8.7% 8.9% 9.1%
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RETURN ON AVERAGE EQUITY
Income from continuing
operations.................. $ 49,984 $ 74,867 $ 49,577 $ 34,499 $ 30,707
Average equity................ 606,009 474,733 395,212 298,901 361,258
Return...................... 8.2% 15.8% 12.5% 11.5% 8.5%
CURRENT RATIO
Current assets................ $ 171,835 $ 139,842 $ 114,670 $ 91,289 $ 75,257
Current liabilities........... 295,083 188,258 122,935 178,433 161,243
Ratio....................... 0.6 0.7 0.9 0.5 0.5
RATIO OF BOOK EQUITY TO DEBT
Book equity as of December
31.......................... $ 623,437 $ 536,037 $ 427,930 $ 365,494 $213,289
Total debt.................... 728,529 666,161 662,915 655,174 752,963
Ratio....................... 0.9 0.8 0.6 0.6 0.3
RATIO OF MARKET EQUITY TO DEBT
Market equity as of December
31.......................... $3,161,681 $4,678,304 $1,867,828 $ 743,369 $399,795
Total debt.................... 728,529 666,161 662,915 655,174 752,963
Ratio....................... 4.3 7.0 2.8 1.1 0.5
EXHIBIT 12 (CONTINUED)
THE PROMUS COMPANIES INCORPORATED
COMPUTATIONS OF RATIOS
(IN THOUSANDS, EXCEPT RATIO AMOUNTS)
FISCAL YEAR
----------------------------------------------------------------
1994 1993 1992 1991 1990
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RATIO OF EBITDA TO INTEREST PAID
Income from continuing
operations.................. $ 49,984 $ 74,867 $ 49,577 $ 34,499 $ 30,707
Add/(less):
Income tax provision........ 75,391 59,394 35,479 24,566 23,505
Interest expense............ 78,322 73,080 77,571 92,169 88,263
Interest expense of
nonconsolidated affiliates (1,959) - - - -
Depreciation and
amortization.............. 86,644 70,207 63,826 67,233 71,104
Deferred finance charge
amortization.............. (2,844) (3,261) (4,661) (5,330) (4,655)
Amortization of debt
discounts and premiums.... (176) (172) (194) (252) 122
Net losses of and
distributions from
nonconsolidated affiliates 12,398 (37) 167 118 -
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Earnings before interest,
taxes, depreciation and
amortization................ $ 297,760 $ 274,078 $ 221,765 $ 213,003 $209,046
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Interest expense.............. $ 78,322 $ 73,080 $ 77,571 $ 92,169 $ 88,263
Add/(less):
Interest expense of
nonconsolidated affiliates (1,959) - - - -
Deferred finance charge
amortization.............. (2,844) (3,261) (4,661) (5,330) (4,655)
Amortization of debt
discounts and premiums.... (176) (172) (194) (252) 122
Capitalized interest........ 3,764 3,107 2,297 1,558 4,542
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Interest paid........... $ 77,107 $ 72,754 $ 75,013 $ 88,145 $ 88,272
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Ratio of EBITDA to interest
paid........................ 3.9 3.8 3.0 2.4 2.4
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2
EXHIBIT 12 (CONTINUED)
THE PROMUS COMPANIES INCORPORATED
COMPUTATIONS OF RATIOS
(IN THOUSANDS, EXCEPT RATIO AMOUNTS)
FISCAL YEAR
----------------------------------------------------------------
1994 1993 1992 1991 1990
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RATIO OF DEBT TO EBITDA
Total debt.................... $ 728,529 $ 666,161 $ 662,915 $ 655,174 $752,963
---------- ---------- ---------- ---------- --------
---------- ---------- ---------- ---------- --------
Income from continuing
operations.................. $ 49,984 $ 74,867 $ 49,577 $ 34,499 $ 30,707
Add/(less):
Income tax provision........ 75,391 59,394 35,479 24,566 23,505
Interest expense............ 78,322 73,080 77,571 92,169 88,263
Interest expense of
nonconsolidated affiliates (1,959) - - - -
Depreciation and
amortization.............. 86,644 70,207 63,826 67,233 71,104
Deferred finance charge
amortization.............. (2,844) (3,261) (4,661) (5,330) (4,655)
Amortization of debt
discounts and premiums.... (176) (172) (194) (252) 122
Net losses of and
distributions from
nonconsolidated affiliates 12,398 (37) 167 118 -
---------- ---------- ---------- ---------- --------
Earnings before interest,
taxes, depreciation and
amortization.............. $ 297,760 $ 274,078 $ 221,765 $ 213,003 $209,046
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Ratio of total debt to
EBITDA.................... 2.4 2.4 3.0 3.1 3.6
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3
EXHIBIT 12 (CONTINUED)
THE PROMUS COMPANIES INCORPORATED
COMPUTATIONS OF RATIOS
(IN THOUSANDS, EXCEPT RATIO AMOUNTS)
FISCAL YEAR
----------------------------------------------------------------
1994 1993 1992 1991 1990
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RATIO OF EARNINGS TO FIXED
CHARGES
Income from continuing
operations.................. $ 49,984 $ 74,867 $ 49,577 $ 34,499 $ 30,707
Add:
Provision for income
taxes..................... 75,391 59,394 35,479 24,566 23,505
Interest expense............ 78,322 73,080 77,571 92,169 88,263
Interest included in rental
expense................... 5,244 7,207 3,648 3,801 3,936
Amortization of capitalized
interest.................. 628 892 311 1,655 276
(Income) or loss from equity
investments............... - (89) 167 - -
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Earnings as defined........... $ 209,569 $ 215,351 $ 166,753 $ 156,690 $146,687
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Fixed charges:
Interest expense............ $ 78,322 $ 73,080 $ 77,571 $ 92,169 $ 88,263
Capitalized interest........ 3,764 3,107 2,297 1,558 4,542
Interest included in rental
expense................... 5,244 7,207 3,648 3,801 3,936
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Total fixed charges......... $ 87,330 $ 83,394 $ 83,516 $ 97,528 $ 96,741
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Ratio of earnings to fixed
charges................... 2.4 2.6 2.0 1.6 1.5
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4