EX-12.1 3 a2220461zex-12_1.htm EX-12.1

Exhibit 12.1

 

Penn National Gaming, Inc

Computation of Ratio of Earnings to Fixed Charges

(in thousands, except ratio)

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three

 

 

 

 

 

 

 

 

 

 

 

 

 

Months Ended

 

 

 

For the Year Ended December 31,

 

March 31,

 

 

 

2009 (1)

 

2010

 

2011

 

2012

 

2013 (2)

 

2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income taxes and minority interests

 

$

(326,760

)

$

30,492

 

$

381,868

 

$

360,722

 

$

(925,534

)

$

8,854

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges (from below)

 

157,159

 

146,409

 

132,658

 

99,784

 

214,945

 

76,726

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of capitalized interest

 

2,301

 

1,724

 

1,905

 

2,177

 

2,222

 

741

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distributed income of equity investees

 

—

 

—

 

—

 

9,400

 

21,500

 

5,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share of pre-tax losses of equity investees for which charges arising from guarantees are included in fixed charges

 

—

 

—

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtract:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest capitalized

 

(6,974

)

(5,514

)

(5,616

)

(8,434

)

(1,393

)

(70

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preference security dividend requirements of consolidated subsidiaries

 

—

 

—

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncontrolling interest in pre-tax income of subsidiaries that have not incurred fixed charges

 

—

 

—

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings, as defined

 

$

(174,274

)

$

173,111

 

$

510,815

 

$

463,649

 

$

(688,260

)

$

91,751

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, including amounts capitalized

 

129,869

 

122,927

 

95,746

 

83,026

 

90,373

 

9,858

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortized premiums, discounts and capitalized expenses related to indebtedness

 

12,089

 

12,802

 

9,434

 

6,848

 

8,112

 

1,507

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Write-off of premiums, discounts and capitalized expenses related to indebtedness

 

4,793

 

519

 

17,838

 

—

 

61,660

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The interest factor in rental expense

 

10,408

 

10,161

 

9,640

 

9,910

 

54,800

 

65,361

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preference security dividend requirements of consolidated subsidiaries

 

—

 

—

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges

 

157,159

 

146,409

 

132,658

 

99,784

 

214,945

 

76,726

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

—

 

1.18

 

3.85

 

4.65

 

—

 

1.20

 

 

(1) Our earnings were inadequate to cover our fixed charges by $331,433 for the year ended December 31, 2009 due to non-cash impairment charges.

 

(2) Our earnings were inadequate to cover our fixed charges by $903,205 for the year ended December 31, 2013 due to non-cash impairment charges.