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EXHIBIT 12
COAST RESORTS, INC.
COMPUTATION OF EARNINGS TO FIXED CHARGES
(Dollars in thousands)
Pro Forma(3)
Three months --------------------------
Ended Three months
Years Ended December 31, March 31, Year Ended Ended
------------------------------------------- --------------- December 31, March 31,
1994 1995 1996(1) 1997(2) 1998 1998 1999 1998 1999
------ ------ ------- ------- ------ ------ ------ ------------ ------------
Earnings:
Income before income taxes and
extraordinary item .................. 14,963 14,226 11,436 (4,733) 13,983 4,443 9,336 19,492 10,756
Add, fixed charges .................... 462 4,612 32,320 30,088 30,838 7,470 7,492 25,329 6,120
Add, amortization of capitalized
interest ............................ -- -- 18 218 218 55 55 218 55
Subtract, interest capitalized ........ -- (235) (7,464) (1,016) (58) -- -- (58) --
------ ------ ------ ------ ------ ----- ----- ------ ------
15,425 18,603 36,310 24,557 44,981 11,968 16,883 44,981 16,931
------ ------ ------ ------ ------ ----- ----- ------ ------
Fixed charges:
Interest expense ...................... 345 3,886 22,236 26,342 27,323 6,764 6,514 22,243 5,231
Interest capitalized .................. -- 235 7,464 1,016 58 -- -- 58 --
Amortization of debt financing costs .. -- -- 1,005 1,113 1,204 301 256 775 167
Interest factor on rentals ............ 117 491 1,615 1,617 2,253 405 722 2,253 722
------ ------ ------ ------ ------ ----- ----- ------ ------
462 4,612 32,320 30,088 30,838 7,470 7,492 25,329 6,120
------ ------ ------ ------ ------ ----- ----- ------ ------
Ratio of earnings to fixed charges ...... 33.4 4.0 1.1 -- 1.5 1.6 2.3 1.8 2.8
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(1) The Orleans opened in 1996.
(2) Earnings in 1997 were insufficient to cover fixed charges by $5,531,000.
Accordingly, such ratio has not been presented.
(3) Pro forma to reflect the offering of outstanding notes, initial borrowings
of $47.0 million under the new credit facility, and the repurchase of
substantially all of the 13% first mortgage notes and the repurchase of all
of the 10-7/8% first mortgage notes. The pro forma data assume that such
transactions occurred on January 1, 1998 and reflect a net reduction in
interest expense and amortization of debt issue costs.