EX-12.1 5 ex12-1.txt COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES EXHIBIT 12.1
KERZNER INTERNATIONAL LIMITED (F/K/A SUN INTERNATIONAL HOTELS LIMITED) AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (In Thousands of Dollars) FOR THE SIX MONTHS FOR THE YEARS ENDED DECEMBER 31, ENDED JUNE 30, ---------------------------------------------------- ------------------- 1997 1998 1999 2000 2001 2001 2002 -------- -------- -------- ------------------- ------------------- Earnings available for fixed charges: Earnings (loss) before income taxes and extraordinary item 92,333 65,755 79,146 (112,791) 32,746 57,972 55,178 Interest and amortization of debt discount and expense 24,370 4,516 50,699 45,678 52,702 26,836 20,914 Interest element of rentals (A) 879 1,187 1,893 1,963 2,407 1,217 1,202 Cash distributions received from equity investees 1,589 2,061 2,651 2,848 2,871 1,731 1,611 Less equity earnings in equity investees (2,214) (2,730) (2,628) (4,225) (3,059) (2,804) (1,828) Amortization of capitalized interest - - 1,417 1,580 1,985 975 980 Earnings available for fixed charges 116,957 70,789 133,178 (64,947) 89,652 85,927 78,057 Fixed charges: Interest and amortization of debt discount and expense 24,370 4,516 50,699 45,678 52,702 26,836 20,914 Capitalized interest 6,778 35,304 4,865 11,072 1,099 821 160 Interest element of rentals (A) 879 1,187 1,893 1,963 2,407 1,217 1,202 Total fixed charges 32,027 41,007 57,457 58,713 56,208 28,874 22,276 Ratio of earnings to fixed charges (B) 3.65 1.73 2.32 - 1.60 2.98 3.50 (A) The Company estimates the interest component of rent expense to be 0.33. (B) Earnings were insufficient to cover fixed charges by $123,660,000 for the year 2000.