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EXHIBIT 12. 1
RATIO OF EARNINGS TO FIXED CHARGES
EXHIBIT 12.1
ECHOSTAR DBS CORPORATION
RATIO OF EARNINGS TO FIXED CHARGES
(in thousands)
FOR THE YEARS ENDED DECEMBER 31,
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2002 AS
1999 2000 2001 RESTATED (1) 2003
--------- --------- --------- --------- ---------
Income (loss) before taxes............................... $(562,285) $(607,540) $ 32,497 $ 127,832 $ 333,114
Interest expense (net of amounts capitalized)............ 196,390 193,685 192,900 338,883 407,030
Amortization of capitalized interest (estimate).......... 10,708 10,708 10,708 12,395 14,455
Interest component of rent expense (2) .................. 192 253 700 904 1,515
========= ========= ========= ========= =========
Earnings before fixed charges ..................... $(354,995) $(402,894) $ 236,805 $ 480,014 $ 756,114
========= ========= ========= ========= =========
Interest expense (net of amounts capitalized)............ $ 196,390 $ 193,685 $ 192,900 $ 338,883 $ 407,030
Capitalized interest .................................... - - - 23,876 8,428
Interest component of rent expense (2) .................. 192 253 700 904 1,515
========= ========= ========= ========= =========
Total fixed charges ................................ $ 196,582 $ 193,938 $ 193,600 $ 363,663 $ 416,973
========= ========= ========= ========= =========
Ratio of earnings to fixed charges ...................... - - 1.22 1.32 1.81
========= ========= ========= ========= =========
Deficiency of available earnings to fixed charges ....... $(551,577) $(596,832) $ - $ - $ -
========= ========= ========= ========= =========
(1) We restated our 2002 consolidated financial statements to reverse an accrual
of approximately $30.2 million, on a pre-tax basis, related to the replacement
of smart cards in satellite receivers owned by us and leased to consumers.
(2) The interest component of rent expense has been estimated by taking the
difference between our gross rent expense and the net present value of our rent
expense using the weighted average cost of debt for our senior notes during each
respective period. The rates applied are approximately 9% for the years ended
December 31, 1999, 2000, 2001 and 2003; and 10% for the year ended December 31,
2002.