EX-12 9 pnkex12123117.htm EXHIBIT 12 Exhibit


Exhibit 12

Pinnacle Entertainment, Inc.
Computation of Ratio of Earnings to Fixed Charges

 
For the year ended December 31,
 
2013
 
2014
 
2015
 
2016
 
2017
 
 
 
 
 
 
 
 
 
 
 
(in thousands)
Earnings:
 
 
 
 
 
 
 
 
 
Pre-tax income (loss) from continuing operations before losses from equity method investments
$
(96,254
)
 
$
49,592

 
$
56,758

 
$
(485,825
)
 
$
47,245

Add: Fixed charges
178,723

 
261,623

 
250,313

 
342,346

 
392,312

Less: Capitalized interest
(3,282
)
 
(2,854
)
 
—

 
(105
)
 
(64
)
Total earnings
$
79,187

 
$
308,361

 
$
307,071

 
$
(143,584
)
 
$
439,493

 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
Interest expense, net of capitalized interest (a)
$
170,218

 
$
253,048

 
$
244,708

 
$
334,777

 
$
381,349

Capitalized interest
3,282

 
2,854

 
—

 
105

 
64

Estimated interest portion of rent expense
5,223

 
5,721

 
5,605

 
7,464

 
10,899

Total fixed charges
$
178,723

 
$
261,623

 
$
250,313

 
$
342,346

 
$
392,312

Ratio of earnings to fixed charges
(b)

 
1.2x

 
1.2x

 
(b)

 
1.1x

(a)
Inclusive of amortization of debt issuance costs and debt discounts/premiums and exclusive of interest income.
(b)
Due principally to large non-cash charges deducted to compute earnings, earnings were less than fixed charges by $99.5 million and $485.9 million for the years ended December 31, 2013 and 2016, respectively.