EX-12 4 d97763exv12.txt EX-12 STATEMENTS REGARDING COMPUTATION OF RATIOS Exhibit 12 ECHOSTAR DBS CORPORATION AND SUBSIDIARIES AND AFFILIATES COMPUTATION OF RATIOS (IN THOUSANDS) (UNAUDITED) CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES:
Three Months Year Ended December 31, Ended ------------------------------------------------------------------------- March 31, 1997 1998 1999 2000 2001 2002 --------- --------- --------- --------- --------- --------- Income (loss) before taxes and equity in losses of equity investees ............... $(323,278) $(294,304) $(562,285) $(607,540) $ 32,497 $ 19,222 Amortization of capitalized interest .... 8,901 9,654 10,708 10,708 10,708 2,859 --------- --------- --------- --------- --------- --------- Income from continuing operations before income taxes and capitalized interest ................ $(314,377) $(284,650) $(551,577) $(596,832) $ 43,205 $ 22,081 Interest expense ........ 104,192 167,529 196,390 193,685 192,900 82,137 Capitalized interest .... 43,169 21,678 -- -- -- 8,740 Interest component of rent expense (1) ........ 64 74 192 230 351 114 --------- --------- --------- --------- --------- --------- Total fixed charges ..... 147,425 189,281 196,582 193,915 193,251 90,991 Earnings before fixed charges ................. $(210,121) $(117,047) $(354,995) $(402,917) $ 236,456 $ 104,332 Ratio of earnings to fixed changes ........... -- -- -- -- 1.22 1.15 ========= ========= ========= ========= ========= ========= Deficiency of available earnings to fixed charges $(357,546) $(306,328) $(551,577) $(596,832) $ -- $-- ========= ========= ========= ========= ========= =========
---------- (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, 1997 and 1998. The weighted-average cost of capital for the years ended December 31, 1999 through December 31, 2001 and for the three months ended March 31, 2002 has been approximated at 9%. The cost of capital used to calculate the interest component of rent expense is representative of our outstanding secured borrowings during each respective period.