Pinnacle Entertainment, Inc. Exhibit 12.1
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Ratio of Earnings To Fixed Charges
$ in thousands
Three months ended
Years ended December 31, March 31,
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1997 1998 1999 2000 2001 2001 2002
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Earnings:
Pre-tax income (loss) $ 14,520 $ 21,611 $ 84,973 $131,888 $(50,555) $ (3,314) $(3,591)
Add fixed charges 8,094 26,751 69,531 64,111 53,675 13,310 13,532
Less capitalized interest (425) (2,142) (1,359) (8,148) (481) (226) (47)
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Total earnings $ 22,189 $ 46,220 $153,145 $187,851 $ 2,639 $ 9,770 $ 9,894
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Fixed charges:
Interest expense - inclusive of the
amortization of debt issuance costs $ 7,302 $ 22,518 $ 64,573 $ 52,620 $ 49,853 $ 12,307 $12,633
Capitalized interest 425 2,142 1,359 8,148 481 226 47
Estimated interest portion in rent expense 367 2,091 3,599 3,343 3,341 777 852
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Total fixed charges $ 8,094 $ 26,751 $ 69,531 $ 64,111 $ 53,675 $ 13,310 $13,532
Dividend on convertible preferred stock $ 1,520 $ - $ - $ - $ - $ - $ -
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Total fixed charges and preferred
stock dividend $ 9,614 $ 26,751 $ 69,531 $ 64,111 $ 53,675 $ 13,310 $13,532
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Ratio of earnings to fixed charges (1) 2.74 x 1.73 x 2.20 x 2.93 x .05 x .73 x .73 x
Ratio of earnings to combined fixed charges and
preferred dividend (2) 2.31 x 1.73 x 2.20 x 2.93 x .05 x .73 x .73 x
(1) In computing the ratio of earnings to fixed charges: (1) earnings were
calculated from income from continuing operations, before income taxes, and
fixed charges, and excluding capitalized interest; and (2) fixed chagrges were
computed from interest expense, amortization of debt issuance costs, capitalized
interest, and the estimated interest included in rental expense. Earnings were
insufficient to cover fixed charges by $51 million for the year ended December
31, 2001 and $3.5 million and $3.6 million for the three months ended March 31,
2001 and 2002, respectively.
(2) The ratio of earnings to combined fixed charges and preferred dividend is
computed similar to (a) except for the preferred dividend paid in 1997.