EX-12.1 2 d20275a1exv12w1.txt COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES . . . EXHIBIT 12.1 RATIO OF EARNINGS TO FIXED CHARGES EXHIBIT 12.1 ECHOSTAR DBS CORPORATION RATIO OF EARNINGS TO FIXED CHARGES (in thousands)
FOR THE YEARS ENDED DECEMBER 31, ------------------------------------------------------------------------ 2000 2001 2002 2003 2004 ----------- -------- --------- --------- --------- Income (loss) before taxes............. $ (607,540) $ 32,497 $ 127,832 $ 333,114 $ 310,478 Interest expense (net of amounts capitalized)........................ 193,685 192,900 338,883 407,030 433,364 Amortization of capitalized interest (estimate).......................... 10,708 10,708 12,395 14,455 11,052 Interest component of rent expense (2)................................ 253 700 904 1,515 2,105 ----------- -------- --------- --------- --------- Earnings before fixed charges....... $ (402,894) $236,805 $ 480,014 $ 756,114 $ 756,999 =========== ======== ========= ========= ========= Interest expense (net of amounts capitalized)........................ $ 193,685 $192,900 $ 338,883 $ 407,030 $ 433,364 Capitalized interest................... - - 23,876 8,428 - Interest component of rent expense (2)................................ 253 700 904 1,515 2,105 ----------- -------- --------- --------- --------- Total fixed charges................. $ 193,938 $193,600 $ 363,663 $ 416,973 $ 435,469 =========== ======== ========= ========= ========= Ratio of earnings to fixed charges..... - 1.22 1.32 1.81 1.74 =========== ======== ========= ========= ========= Deficiency of available earnings to fixed charges....................... $ (596,832) $ - $ - $ - $ - =========== ======== ========= ========= =========
(1) The interest component of rent expense has been estimated by taking the difference between our gross rent expense and the net present value of our rent expense using the weighted average cost of debt for our senior notes during each respective period. The rates applied are approximately 9% for the years ended December 31, 2000, 2001, and 2003; 10% for the year ended December 31, 2002, and 7% for the year ended December 31, 2004. - 1 -