EX-12.1 4 g71638ex12-1.txt COMPUTATION OF RATIO EARNINGS & FIXED CHARGES 1 EXHIBIT 12 VECTOR GROUP LTD. RATIO OF EARNINGS TO FIXED CHARGES (Dollars in thousands, except ratios)
YEAR ENDED DECEMBER 31, SIX MONTHS ENDED JUNE 30, ---------------------------------------------------------------- ------------------------- Earnings as Defined: 1996 1997 1998 1999 2000 2000 2001 --------- --------- --------- --------- --------- --------- --------- Pre-Tax Income from Continuing Operations ................... $ (64,113) $ (50,298) $ (35,394) $ 313,075 $ 271,347 $ 5,762 $ 19,621 Minority Interest Income ..... -- -- -- -- (18,910) -- -- Interest Expense ............. 60,556 61,778 79,704 54,378 30,610 23,639 3,600 Loss in Equity of Affiliate .. 7,808 26,646 28,717 11,315 5,597 2,913 102 Rental Expense ............... 1,303 1,207 1,011 2,454 2,702 1,256 1,689 --------- --------- --------- --------- --------- --------- --------- Total Earnings ............... $ 5,554 $ 39,333 $ 74,038 $ 381,222 $ 291,346 $ 33,570 $ 25,012 ========= ========= ========= ========= ========= ========= ========= Fixed Charges as Defined: Interest Expense ............. $ 60,556 $ 61,778 $ 79,704 $ 54,378 $ 30,610 $ 23,639 $ 3,600 Capitalized Interest ......... 6,387 693 761 3,287 -- -- -- Rental Expense ............... 1,303 1,207 1,011 2,454 2,702 1,256 1,689 --------- --------- --------- --------- --------- --------- --------- Total Fixed Charges .......... $ 68,246 $ 63,678 $ 81,476 $ 60,119 $ 33,312 $ 24,895 $ 5,289 ========= ========= ========= ========= ========= ========= ========= Ratio of Earnings to Fixed Charges ...................... 0.17x 0.63x 0.92x 6.40x 8.75x 1.35x 4.73x