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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1994 1995 1996 1997 1998
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Net loss $ (4,650) $ (7,026) $(16,610) $(25,619) $(39,912)
Add:
Equity in losses of
unconsolidated affiliate -- -- -- -- 738
Extraordinary loss (1) 1,324 -- 3,253 -- --
Cumulative effect of change
in accounting principle (2) -- -- -- 210 --
Provision for income taxes -- 66 28 344 375
Add fixed charges (3):
Interest 966 4,522 8,243 17,895 23,064
Amortization of debt costs 203 260 564 1,008 1,004
Interest portion of rentals 74 106 159 210 174
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Earnings available to cover
fixed charges (2,083) (2,072) (4,363) (5,952) (14,557)
Less fixed charges 1,243 4,888 8,966 19,113 24,242
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Deficiency in the coverage of
fixed charges $ (3,326) $ (6,960) $ (13,329) $ (25,065) $ (38,799)
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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).