EX-12 2 oeh-ex12_20131231x10k.htm EXHIBIT 12 OEH-EX12_2013.12.31-10K


EXHIBIT 12

ORIENT-EXPRESS HOTELS LTD. AND SUBSIDIARIES

Computation of Ratios of Earnings to Fixed Charges(3) 

 
 
Year ended December 31,
 
 
2013
 
2012
 
2011
 
2010
 
2009
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings available to cover fixed charges:
 
 
 
 
 
 
 
 
 
 
Add:
 
 
 
 
 
 
 
 
 
 
Earnings/(losses) before income taxes and earnings from unconsolidated companies from continuing operations
 
(14,992
)
 
8,101

 
(4,637
)
 
(11,250
)
 
142

Fixed charges
 
39,432

 
38,568

 
47,034

 
40,646

 
40,013

Amortization of capitalized interest
 
468

 
398

 
510

 
496

 
445

Distributed income of equity method investees
 
7,841

 
2,524

 
2,428

 
1,759

 
3,790

Less:
 
 
 
 
 
 
 
 
 
 
Interest capitalized
 
(1,088
)
 
(4,193
)
 
(863
)
 
(2,201
)
 
(949
)
Non-controlling interest in pre-tax income of subsidiaries without fixed charges
 
120

 
220

 
314

 
417

 
178

Earnings available to cover fixed charges
 
31,781

 
45,618

 
44,786

 
29,867

 
43,619

 
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
Interest expensed and capitalized (1)
 
28,217

 
29,737

 
36,571

 
32,609

 
33,475

Amortized premiums, discounts and capitalized expenses related to indebtedness
 
7,197

 
5,318

 
7,167

 
4,884

 
3,596

Estimate of interest in rent expense (2)
 
4,018

 
3,513

 
3,296

 
3,153

 
2,942

Total fixed charges
 
39,432

 
38,568

 
47,034

 
40,646

 
40,013

 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
 
N/A
 
1.2

 
N/A

 
N/A

 
1.1

 
 
 
 
 
 
 
 
 
 
 
Deficiency in earnings to cover fixed charges
 
7,650

 
—

 
2,248

 
10,779

 
—

 
 
 
 
 
 
 
 
 
 
 
(1) The interest included in fixed charges is interest on third party indebtedness. Interest expense accrued on uncertain tax positions is excluded from the calculation of earnings because that amount was presented as a component of income taxes.
(2) Historically, OEH has been using one-third of rent expense as a reasonable estimate of the financing component of rent expense, since it is impracticable to determine the actual financing component of rent expense.
(3) Certain balances in prior periods have been restated for discontinued operations.