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EXHIBIT 12.1
RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
Pinnacle's ratio of earnings to fixed charges for each of the periods
indicated is as follows:
<TABLE>
<CAPTION>
Six
Months
Ended
Fiscal Year Ended December 31, June 30,
1995 1996 1997 1998 1999 2000
----- ------- ------- -------- -------- --------
(In thousands)
<S> <C> <C> <C> <C> <C> <C>
Pre-tax loss from continuing operations before
adjustment for in-kind preferred stock dividends
and accretion .................................... $(645) $(2,016) $(8,461) $(36,630) $(60,821) $(42,393)
Fixed charges:
Interest expense ................................. 181 1,155 6,925 12,300 22,953 16,311
Amortization of original issue discount and debt
issue costs ................................... 59 164 292 16,426 23,708 13,249
Rentals:
Office space (33%) ............................ 10 32 62 102 134 140
Telecommunications sites (33%) ................ 29 124 427 1,106 5,531 6,617
Preferred stock dividends and accretion .......... -- -- -- 3,094 2,930 --
----- ------- ------- -------- -------- --------
Total fixed charges ................................. 279 1,475 7,706 33,028 55,256 36,317
===== ======= ======= ======== ======== ========
Pre-tax loss from continuing operations before
adjustment for in-kind preferred stock
dividends and accretion plus fixed charges ....... $(366) $ (541) $ (755) $ (6,696) $ (8,495) $ (6,076)
===== ======= ======= ======== ======== ========
Ratio of earnings to fixed charges .................. (a) (a) (a) (a) (a) (a)
===== ======= ======= ======== ======== ========
</TABLE>
(a) Due to Pinnacle's losses in 1995, 1996, 1997, 1998, 1999 and the six months
ended June 30, 2000, the ratio coverage was less than 1:1. Pinnacle must
generate additional earnings of $645, $2,016, $8,461, $39,724, $63,751 and
$42,393 in 1995, 1996, 1997, 1998, 1999 and the six months ended June 30, 2000,
respectively, to achieve a coverage ratio of 1:1.
