EXHIBIT 12.1
LODGENET ENTERTAINMENT CORPORATION AND SUBSIDIARIES
Statement Regarding Computation of Ratios (Unaudited)
(Dollar amounts in thousands)
Computation of Coverage of Fixed Charges
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1993 1994 1995 1996 1997
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Net loss $ (2,057) $ (4,650) $ (7,026) $ (16,610) $ (25,619)
Add:
Extraordinary loss (1) -- 1,324 -- 3,253 --
Cumulative effect of change
in accounting principle (2) -- -- -- -- 210
Provision for income taxes -- -- 66 28 344
Add fixed charges (3):
Interest 2,096 966 4,522 8,243 17,895
Interest portion of rentals 27 74 106 159 210
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Earnings available to cover
fixed charges 66 (2,286) (2,332) (4,927) (6,960)
Less fixed charges 2,123 1,040 4,628 8,402 18,105
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Deficiency in the coverage of
fixed charges $ (2,057) $ (3,326) $ (6,960) $ (13,329) $(25,065)
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(1) In 1994 -- loss on early termination of the Company's then bank credit
facility. In 1996 -- loss on early redemption of the Company's 9.95% and
10.35% Senior Notes.
(2) In 1997 -- charge for the effect of adopting EITF Issue 97-13 related to
accounting for certain business reengineering costs.
(3) Fixed charges consist of interest on all indebtedness, including
amortization of debt issuance expense and capitalized interest, and
one-third of rental expense (which is estimated to represent the interest
portion thereof).