EX-12 380 a2202241zex-12.htm EX-12

Exhibit 12

 

ClubCorp Club Operations, Inc.

Computation of Ratio of Earnings to Fixed Charges

Five Years Ended December 28, 2010

 

 

 

2006

 

2007

 

2008

 

2009

 

2010

 

Earnings:

 

 

 

 

 

 

 

 

 

 

 

(Loss) income before income taxes

 

$

(64,475

)

$

(75,337

)

$

(59,666

)

$

(20,180

)

$

318,711

 

Equity in earnings from unconsolidated ventures

 

(2,383

)

(851

)

(1,514

)

(706

)

(1,309

)

(Loss) income from continuing operations before taxes, noncontrolling interests and equity in earnings from unconsolidated ventures

 

(66,858

)

(76,188

)

(61,180

)

(20,886

)

317,402

 

 

 

 

 

 

 

 

 

 

 

 

 

Add:

 

 

 

 

 

 

 

 

 

 

 

Total fixed charges (per below)

 

40,326

 

115,037

 

102,928

 

66,132

 

64,418

 

Amortization of capitalized interest

 

29

 

89

 

133

 

146

 

149

 

 

 

 

 

 

 

 

 

 

 

 

 

Less:

 

 

 

 

 

 

 

 

 

 

 

Interest capitalized

 

(2,239

)

(2,382

)

(966

)

(69

)

(115

)

 

 

 

 

 

 

 

 

 

 

 

 

Total earnings

 

$

(24,265

)

$

41,320

 

$

42,847

 

$

45,461

 

$

382,083

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Charges:

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

$

31,166

 

$

105,408

 

$

94,583

 

$

58,383

 

$

57,165

 

Interest capitalized

 

2,239

 

2,382

 

966

 

69

 

115

 

Estimate of interest within rental expense(a)

 

6,921

 

7,247

 

7,379

 

7,680

 

7,138

 

 

 

 

 

 

 

 

 

 

 

 

 

Total fixed charges

 

$

40,326

 

$

115,037

 

$

102,928

 

$

66,132

 

$

64,418

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges(b)

 

—

 

0.36x

 

0.42x

 

0.69x

 

5.93x

 

 

(a)          Fixed charges include the estimated interest component of rent expense (one-third of rent under operating leases) included in income from continuing operations.

 

(b)         For the fiscal years ended December 26, 2006, December 25, 2007, December 30, 2008 and December 29, 2009, earnings were insufficient to cover fixed charges by approximately $64.6 million, $73.7 million, $60.1 million and $20.7 million, respectively.