Exhibit 12.1
Inergy, L.P. and Subsidiary
Computation of Ratio of Earnings to Fixed Charges
(In Thousands)
| Ended September 30, | |||||||||||||||||
| 2004 | 2003 | 2002 | 2001 | 2000 | |||||||||||||
Earnings: | |||||||||||||||||
Net income (loss) | $ | (4,596 | ) | $ | 13,512 | $ | 8,309 | $ | 4,349 | $ | (1,829 | ) | |||||
Income taxes | 167 | 103 | 93 | — | 7 | ||||||||||||
Interest expense | 7,878 | 9,982 | 8,365 | 6,670 | 2,740 | ||||||||||||
Interest portion of operating leases | 1,519 | 938 | 683 | 221 | 162 | ||||||||||||
Earnings for ratio calculation | $ | 4,968 | $ | 24,535 | $ | 17,450 | $ | 11,240 | $ | 1,080 | |||||||
Fixed charges: | |||||||||||||||||
Interest expense | $ | 7,878 | $ | 9,982 | $ | 8,365 | $ | 6,670 | $ | 2,740 | |||||||
Interest portion of operating leases | 1,519 | 938 | 683 | 221 | 162 | ||||||||||||
Total fixed charges | $ | 9,397 | $ | 10,920 | $ | 9,048 | $ | 6,891 | $ | 2,902 | |||||||
Ratio of earnings to fixed charges | n/a | 2.25 | 1.93 | 1.63 | n/a | ||||||||||||
For purposes of determining the ratio of earnings to fixed charges, earnings are defined as earnings (loss) from continuing operations before income taxes, plus fixed charges. Fixed charges consist of interest expense on all indebtedness and the amortization of deferred financing costs and interest associated with operating leases. Earnings were inadequate to cover fixed charges by $4.4 million for the year ended September 30, 2004 and $1.8 million for the year ended September 30, 2000.
