EXHIBIT 12.1
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 36,528 27,338 27,216
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15,975 6,721 13,669 19,253 40,352 32,497 29,154
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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
Interest attributable to rental expense -- -- -- -- 321 172 513
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 36,528 27,338 27,216
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Ratio of earnings to fixed charges A B C 1.07x 1.10x 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
Pro Forma Pro Forma
For the Nine For the Nine
Months Ended Months Ended
Pro Forma September 30, September 30,
2002 2002 2003
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Earnings:
Net income before equity in loss
of unconsolidated joint venture 12,707 11,696 8,176
Amortization of capitalized interest 84 63 63
Fixed Charges 29,181 21,818 22,151
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41,972 33,577 30,390
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Fixed Charges:
Interest expense on all indebtedness 27,835 20,877 20,869
Interest attributable to rental expense 321 172 513
Amortization of original issue discount
on 11.653% notes and deferred
financing costs on the 11.653%
notes and 9 1/2% notes 1,025 769 769
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29,181 21,818 22,151
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Pro Forma ratio of earnings to fixed charges 1.44x 1.54x 1.37x
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Pro forma financial data reflects the purchase of all of the 10 7/8% notes and
approximately 89% of 11.653% notes, the issuance of $260.0 million 9 1/2% Senior
Secured Notes, borrowings of $28.0 million under our new $80.0 million senior
secured credit facility and the spin off of Barden Nevada. See Unaudited Pro
Forma Condensed Consolidated Financial Data.