EX-12.1 3 a2093302zex-12_1.txt EXHIBIT 12.1 EXHIBIT 12.1 LAS VEGAS SANDS, INC. COMPUTATION OF EARNINGS TO FIXED CHARGES (DOLLARS IN THOUSANDS)
NINE MONTHS ENDED YEAR ENDED DECEMBER 31, SEPTEMBER 30, ------------------------------------------------------- --------------------- 1997(2) 1998(2) 1999(2) 2000 2001(2) 2001(2) 2002(2) -------- -------- --------- --------- --------- --------- --------- Earnings: Income before preferred return(1)....... $ (520) $(29,763) $(65,623) $ 15,952 $ (3,401) $ (2,269) $(27,026) Add, Loss on Guggenheim Investment...... -- -- -- -- 2,000 459 690 Add, fixed charges...................... 8,781 92,362 118,925 141,298 136,201 101,930 106,162 Add, amortization of capitalized interest.............................. -- -- 900 1,900 1,900 1,395 1,446 Subtract, Preferred Return.............. -- (13,647) (14,399) (18,482) (20,766) (15,423) (17,330) Subtract, interest capitalized.......... (2,200) (39,700) (31,300) (100) (2,000) (1,395) (1,446) ------- -------- -------- -------- -------- -------- -------- 6,061 9,252 8,503 140,568 113,934 84,697 62,496 ------- -------- -------- -------- -------- -------- -------- Fixed Charges: Interest expense, net (including amortizations of debt discount and issue costs).......................... $ 6,581 $ 39,015 $ 71,398 $119,807 $110,744 $ 83,016 $ 85,541 Interest capitalized.................... 2,200 39,700 31,300 100 2,000 1,395 1,446 Preferred Return on Redeemable Interest.............................. -- 13,647 14,399 18,482 20,766 15,423 17,330 1/3 of Rent Expense (3)................ -- -- 1,828 2,909 2,691 2,096 1,845 ------- -------- -------- -------- -------- -------- -------- 8,781 92,362 118,925 141,298 136,201 101,930 106,162 ------- -------- -------- -------- -------- -------- -------- Ratio of earnings to fixed charges........ -- -- -- 1.0x -- -- -- ======= ======== ======== ======== ======== ======== ========
------------------------------ (1) In April 2002, the Financial Accounting Standards Board issued statement No. 145 ('SFAS 145') 'Rescission of FASB Statements Nos. 4. 44 and 64 and Amendment of FASB Statement No. 13.' SFAS 145 addresses the presentation for losses on early retirements of debt in the statement of operations to the extent they do not meet the requirements of APB Opinion No. 30. The Company has adopted SFAS 145 and will no longer present losses on early retirements of debt as an extraordinary item. Accordingly, prior period losses on early retirement of debt have been reclassified to conform to this new presentation and have been deducted from income before preferred return in the accompanying table. For the years ended December 31, 1999, 2000 and 2001 and the nine months ended September 30, 2002 such amounts were $589, $2,785, $1,383 and $51,392. (2) For the years ended December 31, 1997, 1998, 1999 and 2001 and for the nine months ended September 30, 2001 and 2002, earnings were insufficient to cover fixed charges by $2,720, $83,110, $110,422, $22,267, $17,233 and $43,666, respectively. Accordingly, such ratio has not been presented. (3) The interest factor represents one-third of lease expense, which management believes is representative of the interest component of lease expense.