EXHIBIT 12.1
THE MAJESTIC STAR CASINO, LLC
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in thousands)
For the Three
Months Ended
March 31,
------------------ Pro Forma
2001 2002 2003 2004 2005 2005 2006 2005
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Earnings:
Income (loss) from continuing operations
before equity in loss of
unconsolidated joint venture (1) $ 1,642 $ 5,735 $(29,484) $ 7,485 $ (2,947) $ 3,962 $ 3,745 $ (7,256)
Amortization of capitalized interest 84 84 84 84 84 21 21 84
Fixed charges (1) 18,606 38,287 36,966 32,290 34,309 8,093 16,000 62,717
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20,332 44,106 7,566 39,859 31,446 12,076 19,766 55,545
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Fixed charges:
Interest expense on all indebtedness $ 16,028 $ 32,437 $ 31,303 $ 28,642 $ 30,362 $ 7,236 $ 13,314 $ 51,523
Interest expense within rent expense 684 2,080 2,450 2,296 2,324 519 407 1,422
Amortization of original issue discount
and deferred financing costs (1) 1,894 3,770 3,213 1,352 1,623 338 2,279 9,772
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18,606 38,287 36,966 32,290 34,309 8,093 16,000 62,717
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Ratio of earnings to fixed charges 1.09x 1.15x A 1.23x B 1.49x 1.24x C
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(A) Earnings in 2003 were insufficient to cover fixed charges by
approximately $29,400
(B) Earnings in 2005 were insufficient to cover fixed charges by
approximately $2,863
(C) Pro forma earnings in 2005 were insufficient to cover fixed charges by
approximately $7,172
(1) Included is amortization of original issue discount and financing costs
related to the pushdown of the discount notes issued by Majestic
Holdco. The pushdown of the amortization of original issue discount and
financing costs is required pursuant to SEC Staff Accounting Bulletin
Topic 5(J). The amount pushed down for each respective period is $187
for the year ended 2005, $1,494 for the three months ended March 31,
2006 and $6,326 for the pro forma year ended 2005.