EX-12.1 2 ex12-1.txt COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES 1 EXHIBIT 12.1 ECHOSTAR COMMUNICATIONS CORPORATION AND SUBSIDIARIES AND AFFILIATES COMPUTATION OF RATIOS (IN THOUSANDS) (UNAUDITED) CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES:
Year Ended December 31, Three Months --------------------------------------------------------------------- Ended 1995 1996 1997 1998 1999 March 31, 2000 ---------- ---------- ----------- ---------- ------------ -------------- Income (loss) before taxes.................. $(17,231) $(155,679) $(312,679) $(260,838) $(523,694) $(185,075) --------- ---------- ---------- ---------- ---------- ---------- Series A Preferred Stock dividends........ $ 1,204 $ 1,204 $ 1,204 $ 1,204 $ 124 $ -- Series B Preferred Stock dividend......... -- -- 6,164 26,874 241 -- Series C Preferred Stock dividend......... -- -- 1,074 7,137 6,888 493 Interest expense....... 23,985 61,487 104,192 167,529 201,613 61,513 Capitalized interest... 25,763 31,818 43,169 21,678 -- -- Interest component of rent expense(1)........ 71 84 64 74 192 20 -- -- -- -- --- -- --------- ---------- ---------- ---------- ---------- ---------- Total fixed charges... $ 51,023 $ 94,593 $ 155,867 $ 224,496 $ 209,058 $ 62,026 Earnings before fixed charges................ $ 6,825 $ (94,108) $(208,423) $ (93,235) $(321,889) $(123,542) Ratio of earnings to fixed changes.......... 0.13 (0.99) (1.34) (0.42) (1.54) (1.99) ========= ========== ========== ========== ========== ========== Deficiency of available earnings to fixed charges.......... $(44,198) $(188,701) $(364,290) $(317,731) $(530,947) $(185,568) ========= ========== ========== ========== ========== ==========
--------------------- (1) The interest component of rent expense has been estimated by taking the difference between the gross rent expense and net present value of rent expense using a weighted-average cost of capital of approximately 13% for the years ended December 31, 1995, through December 31, 1998. The weighted average cost of capital for the year ended December 31, 1999 and the three months ended March 31, 2000, approximates 9% and 8%, respectively. The cost of capital used to calculate the interest component of rent expense is representative of the Company's outstanding secured borrowings during each respective period.