EX-12.1 5 d90345ex12-1.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:
SIX MONTHS YEAR ENDED DECEMBER 31, ENDED --------------------------------------------------------------------- JUNE 30, 1996 1997 1998 1999 2000 2001 --------- --------- --------- --------- --------- --------- Income (loss) before taxes ........................ $(155,679) $(312,679) $(260,838) $(523,694) $(620,656) $(164,695) Amortization of capitalized interest ......... 2,431 8,901 9,654 10,708 10,708 5,354 --------- --------- --------- --------- --------- --------- Income from continuing operations before income taxes and capitalized interest ..................... $(153,248) $(303,778) $(251,184) $(512,986) $(609,948) $(159,341) Interest expense ............. 61,487 104,192 167,529 201,613 267,990 169,155 Capitalized interest ......... 31,818 43,169 21,678 -- 5,343 10,307 Interest component of rent expense(1) .............. 84 64 74 192 230 88 --------- --------- --------- --------- --------- --------- Total fixed charges .......... 93,389 147,425 189,281 201,805 273,563 179,550 Earnings before fixed charges ...................... $ (91,677) $(199,522) $ (83,581) $(311,181) $(341,728) $ 9,902 Ratio of earnings to fixed changes ................ -- -- -- -- -- -- ========= ========= ========= ========= --------- ========= Deficiency of available earnings to fixed charges .... $(185,066) $(346,947) $(272,862) $(512,986) $(615,291) $(169,648) ========= ========= ========= ========= --------- =========
---------- (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, 1996, through December 31, 1998. The weighted-average cost of capital for the years ended December 31, 1999 and 2000 and for the six months ended June 30, 2001 approximated 9%. 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.