EX-12 6 0006.txt COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES EXHIBIT 12 COAST HOTELS AND CASINOS, INC. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (Dollars in thousands)
Nine-months Ended Years Ended December 31, September 30, ---------------------------------------------------- ---------------------- 1995 1996(1) 1997(2) 1998 1999 1999 2000(3) ------- ---------- ---------- -------- ------ --------- ---------- Earnings: Income before income taxes and extraordinary item.. $14,226 $11,436 $(4,733) $13,983 $31,628 $21,899 $31,919 Add, fixed charges................................. 4,377 24,856 29,072 30,780 25,921 19,408 22,251 Add, amortization of capitalized interest.......... -- 18 218 218 218 164 164 Subtract, interest capitalized..................... (235) (7,464) (1,016) (58) (612) (160) (4,973) -------- -------- --------- --------- -------- --------- --------- 18,368 28,846 23,541 44,923 57,155 41,311 49,361 -------- -------- --------- --------- -------- --------- --------- Fixed charges: Interest expense................................... 3,651 14,772 25,376 27,265 21,891 16,788 14,411 Interest capitalized............................... 235 7,464 1,016 58 612 160 4,973 Amortization of debt financing costs............... -- 1,005 1,113 1,204 555 388 -- Interest factor on rentals......................... 493 1,615 1,617 2,253 2,863 2,072 2,867 -------- -------- --------- --------- -------- --------- --------- 4,377 24,856 29,072 30,780 25,921 19,408 22,251 -------- -------- --------- --------- -------- --------- --------- Ratio of earnings to fixed charges.................... 4.2x 1.2x -- 1.5x 2.2x 2.1x 2.2x ======== ======== ========= ========= ======== ========= =========
--------- (1) The Orleans opened in 1996. (2) Earnings in 1997 were insufficient to cover fixed charges by $5,531. Accordingly, such ratio has not been presented. (3) The Suncoast opened in September 2000.