EX-12 3 dex12.txt COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Exhibit 12 COAST HOTELS AND CASINOS, INC. COMPUTATION OF EARNINGS TO FIXED CHARGES (Dollars in thousands)
Years Ended December 31, -------------------------------------- 1997(1) 1998 1999 2000(2) 2001 ------- ------ ------ ------- ------ Earnings: Income before income taxes and extraordinary item. (4,733) 13,983 31,628 41,218 55,293 Add, fixed charges................................ 29,072 30,780 25,921 31,537 33,498 Add, amortization of capitalized interest......... 218 218 218 348 368 Subtract, interest capitalized.................... (1,016) (58) (612) (4,511) (1,048) ------ ------ ------ ------ ------ 23,541 44,923 57,155 68,592 88,111 ------ ------ ------ ------ ------ Fixed Charges: Interest expense.................................. 25,326 27,265 21,891 23,443 29,587 Interest capitalized.............................. 1,016 58 612 4,511 1,048 Amortization of debt financing costs (3).......... 1,113 1,204 555 -- -- Interest factor on rentals (4).................... 1,617 2,253 2,863 3,583 2,863 ------ ------ ------ ------ ------ 29,072 30,780 25,921 31,537 33,498 ------ ------ ------ ------ ------ Ratio of earnings to fixed charges................... -- 1.5x 2.2x 2.2x 2.6x ====== ====== ====== ====== ======
-------- (1) Earnings in 1997 were insufficient to cover fixed charges by $5,531. Accordingly, such ratio has not been presented. (2) The Suncoast opened in September 2000. (3) Effective January 1, 2000, amortization of debt financing costs is included in interest expense. (4) The interest factor represents one-third of lease expense, which management believes is representative of the interest component of lease expense.