EX-12.1 7 a12-28895_1ex12d1.htm EX-12.1

Exhibit 12.1

 

Summit Hotel Properties, Inc.

Ratio of Earnings to Fixed Charges and Preferred Stock Dividends

(Dollars in Thousands)

 

 

 

Summit Hotel
Properties, Inc.

 

Summit Hotel Properties, LLC
(Predecessor)

 

 

 

For the Nine
Months
Ended
September 30, 2012

 

For the Period
February 14,
2011

through
December 31,

 

For the
Period

January 1,
2011
through
February 13,

 

Year Ended December 31,

 

 

 

(Unaudited)

 

2011

 

2011

 

2010

 

2009

 

2008

 

2007

 

Earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax income (loss) from continuing operations

 

$

431

 

$

(6,502

)

$

(5,868

)

$

(20,718

)

$

(17,779

)

$

4,011

 

$

3,918

 

Interest expense

 

11,748

 

13,193

 

4,666

 

26,362

 

18,321

 

17,025

 

14,214

 

Amortization of financing costs

 

1,795

 

2,053

 

154

 

1,841

 

2,029

 

1,575

 

1,678

 

Amortization of capitalized interest

 

449

 

524

 

75

 

599

 

599

 

443

 

252

 

Total Earnings

 

$

11,748

 

$

9,268

 

$

(973

)

$

8,084

 

$

3,170

 

$

23,054

 

$

20,062

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Charges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

$

11,748

 

$

13,193

 

$

4,666

 

$

26,362

 

$

18,321

 

$

17,025

 

$

14,214

 

Capitalized interest

 

 

 

 

 

3,142

 

3,829

 

4,490

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of financing costs

 

1,795

 

2,053

 

154

 

1,841

 

2,029

 

1,575

 

1,678

 

Total Fixed Charges

 

$

17,012

 

$

15,246

 

$

4,820

 

$

28,203

 

$

23,492

 

$

22,429

 

$

20,382

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Dividends

 

$

3,469

 

$

411

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends

 

0.85

(1)

0.59

(2)

(0.20

)(3)

0.29

(4)

0.13

(5)

1.03

 

0.98

(6)

 


(1)                                  For this period, earnings were less than fixed charges and preferred stock dividends. The total amount of fixed charges and preferred stock dividends for this period was approximately $17,012,000 and the total amount of earnings was approximately $14,423,000. The amount of the deficiency, or the amount of fixed charges and preferred stock dividends in excess of earnings, was approximately $2,589,000.

(2)                                  For this period, earnings were less than fixed charges and preferred stock dividends.  The total amount of fixed charges and preferred stock dividends for this period was approximately $15,657,000 and the total amount of earnings was approximately $9,268,000.  The amount of the deficiency, or the amount of fixed charges and preferred stock dividends in excess of earnings, was approximately $6,389,000.

(3)                                  For this period, earnings were less than fixed charges.  The total amount of fixed charges for this period was approximately $4,820,000 and the total amount of earnings was approximately $(973,000).  The amount of the deficiency, or the amount of fixed charges in excess of earnings, was approximately $5,793,000.

(4)                                  For this period, earnings were less than fixed charges.  The total amount of fixed charges for this period was approximately $28,203,000 and the total amount of earnings was approximately $8,084,000.  The amount of the deficiency, or the amount of fixed charges in excess of earnings, was approximately $20,119,000.

(5)                                  For this period, earnings were less than fixed charges.  The total amount of fixed charges for this period was approximately $23,492,000 and the total amount of earnings was approximately $3,170,000.  The amount of the deficiency, or the amount of fixed charges in excess of earnings, was approximately $20,322,000.

(6)                                  For this period, earnings were less than fixed charges.  The total amount of fixed charges for this period was approximately $20,382,000 and the total amount of earnings was approximately $20,062,000.  The amount of the deficiency, or the amount of fixed charges in excess of earnings, was approximately $320,000.

 



 

Summit Hotel Properties, Inc.

Ratio of Earnings to Fixed Charges and Preferred Stock Dividends

(Dollars in Thousands)

(Unaudited)

 

 

 

Summit Hotel Properties, Inc.(1)

 

 

 

For the Nine
Months Ended
September 30, 2012

 

For the Period
February 14, 2011
through
December 30, 2011

 

Earnings

 

 

 

 

 

Pre-tax income (loss) from continuing operations(2)

 

$

2,099

 

$

(4,556

)

Interest expense

 

10,080

 

11,247

 

Amortization of financing costs

 

1,795

 

2,053

 

Amortization of capitalized interest

 

449

 

524

 

Total Earnings

 

$

14,423

 

$

9,268

 

 

 

 

 

 

 

Fixed Charges

 

 

 

 

 

Interest expense

 

$

10,080

 

$

11,247

 

Capitalized interest

 

 

 

Amortization of financing costs

 

1,795

 

2,053

 

Total Fixed Charges

 

$

11,875

 

$

13,300

 

 

 

 

 

 

 

Preferred Dividends

 

$

7,456

 

$

5,062

 

 

 

 

 

 

 

Pro forma ratio of earnings to combined fixed charges and preferred stock dividends

 

0.75

(2)

0.50

(3)

 


(1)                                 Assumes that: (i) the 2,700,000 shares of 7.875% Series B Cumulative Redeemable Preferred Stock, $0.01 par value per share (the “Series B Preferred Stock”), of Summit Hotel Properties, Inc. (the “Company”), offered by the prospectus supplement filed by the Company with the Securities and Exchange Commission on December 4, 2012 pursuant to the Securities Act of 1933, as amended (the “Offering”), were issued on February 14, 2011; and the net proceeds from the Offering were used to repay borrowings drawn on the Company’s revolving credit facility.

 

(2)                                 For this period, earnings were less than fixed charges. The total amount of fixed charges for this period was approximately $19,331,000 and the total amount of earnings was approximately $14,423,000. The amount of the deficiency, or the amount of fixed charges (including assumed Series B Preferred Stock dividends) in excess of earnings, was approximately $4,908,000.

 

(3)                                 For this period, earnings were less than fixed charges. The total amount of fixed charges for this period was approximately $18,362,000 and the total amount of earnings was approximately $9,268,000. The amount of the deficiency, or the amount of fixed charges (including assumed Series B Preferred Stock dividends) in excess of earnings, was approximately $9,094,000.