EX-12.1 6 dex121.htm COMPUTATION OF RATIOS Computation of Ratios

EXHIBIT 12.1

 

Pinnacle Entertainment, Inc.

 

Ratio of Earnings to Fixed Charges

($            in thousands)

 

    Year Ended December 31,

   

Nine Months Ended

September 30,


 
    1999

    2000

    2001

    2002

    2003

    2004

    2004

    2005

 

Earnings:

                                                               

Pre-tax income (loss)

  $ 84,973     $ 131,888     ($ 50,555 )   ($ 19,071 )   ($ 34,636 )   $ 17,756     $ 30,280     ($ 17,333 )

Add fixed charges

    69,531       63,903       53,467       53,792       59,736       61,549       45,085       44,673  

Less capitalized interest

    (1,359 )     (8,148 )     (481 )     (788 )     (1,513 )     (5,102 )     (3,067 )     (6,663 )
   


 


 


 


 


 


 


 


Total Earnings

  $ 153,145     $ 187,643     $ 2,431     $ 33,933     $ 23,587     $ 74,203     $ 72,297     $ 20,677  

Fixed Charges:

                                                               

Interest expense—inclusive of the amortization of debt issuance costs

  $ 64,573     $ 52,620     $ 49,853     $ 49,688     $ 54,881     $ 52,538     $ 39,858     $ 35,206  

Capitalized interest

    1,359       8,148       481       788       1,513       5,102       3,067       6,663  

Estimated interest portion in rent expense

    3,599       3,135       3,133       3,316       3,342       3,909       2,159       2,804  
   


 


 


 


 


 


 


 


Total Fixed Charges

  $ 69,531     $ 63,903     $ 53,467     $ 53,792     $ 59,736     $ 61,549     $ 45,085     $ 44,673 (1)

Ratio of earnings to fixed charges

    2.20x       2.94x       0.05x       0.63x       0.39x       1.21x       1.60x       0.46x  
                    $ 51,036     $ 19,859     $ 36,149                     $ 23,996  

(1)   Due to Hurricanes Katrina and Rita, Boomtown New Orleans and Casino Magic Biloxi's reporting was impaired. For the nine months ended September 30, 2005, rent expense was assumed to be equal with that of the prior year during the same period.