EX-12.1 2 d40250a1exv12w1.htm STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES exv12w1
 

Exhibit 12.1
Ratio of Earnings to Fixed Charges
Exhibit 12.1
Echostar DBS Corporation
Ratio of Earnings to Fixed Charges
(in thousands)
                                                             
                        For the Nine Months
        Ended September 30,
    For the Years Ended December 31,   (unaudited)
         
    2001   2002   2003   2004   2005   2005   2006
                             
Income (loss) before taxes
  $ 32,497     $ 127,832     $ 333,114     $ 310,478     $ 1,029,339     $ 847,109     $ 673,756  
Interest expense (net of amounts capitalized)
    192,900       338,883       407,030       433,364       305,265       226,491       303,299  
Amortization of capitalized interest (estimate)
    10,708       12,395       14,455       11,052       11,052       8,289       8,769  
Interest component of rent expense(1)
    700       904       1,515       2,110       2,328       1,343       1,333  
                                           
 
Earnings before fixed charges
  $ 236,805     $ 480,014     $ 756,114     $ 757,004     $ 1,347,984     $ 1,083,232     $ 987,157  
                                           
Interest expense (net of amounts capitalized)
  $ 192,900     $ 338,883     $ 407,030     $ 433,364     $ 305,265     $ 226,491     $ 303,299  
Capitalized interest
          23,876       8,428                          
Interest component of rent expense(1)
    700       904       1,515       2,110       2,328       1,343       1,333  
                                           
   
Total fixed charges
  $ 193,600     $ 363,663     $ 416,973     $ 435,474     $ 307,593     $ 227,834     $ 304,632  
                                           
Ratio of earnings to fixed charges
    1.22       1.32       1.81       1.74       4.38       4.75       3.24  
                                           
 
(1)  The interest component of rent expense has been estimated by taking the difference between our gross rent expense and the net present value of our rent expense using the weighted average cost of debt for our senior notes during each respective period. The rates applied are approximately 9% for the years ended December 31, 2001 and 2003; 10% for the year ended December 31, 2002, and 7% for the years ended December 31, 2004 and 2005 and the nine months ended September 30, 2005 and 2006.