EXHIBIT 12
THE MAJESTIC STAR CASINO, LLC
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(AMOUNTS IN THOUSANDS OF DOLLARS)
For the For the
Nine Months Nine Months
Ended Ended
September 30, September 30,
1998 1999 2000 2001 2002 2002 2003
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Earnings:
Net income (loss) before equity in loss
of unconsolidated joint venture (1,306) (10,912) (3,691) 1,247 3,740 5,096 1,875
Amortization of capitalized interest 84 84 84 84 84 63 63
Fixed charges 17,197 17,549 17,276 17,922 36,207 27,166 26,703
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15,975 6,721 13,669 19,253 40,031 32,325 28,641
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Fixed charges:
Interest expense on all indebtedness 15,326 15,496 14,998 16,028 32,437 24,356 23,884
Amortization of original issue discount
and deferred financing costs on the
11.653% notes and 10-7/8% notes 1,871 2,053 2,278 1,894 3,770 2,810 2,819
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17,197 17,549 17,276 17,922 36,207 27,166 26,703
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Ratio of earnings to fixed charges A B C 1.07x 1.11x 1.19x 1.07x
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(A) Earnings in 1998 were insufficient to cover fixed charges by approximately 1,222
(B) Earnings in 1999 were insufficient to cover fixed charges by approximately 10,828
(C) Earnings in 2000 were insufficient to cover fixed charges by approximately 3,607