Exhibit 12.1
Arch Western Resources, LLC
Ratio of Earnings to Combined Fixed Charges and Preference Dividends
(Dollars in millions, except ratios)
Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | Year Ended December 31, | |||||||||||||||||||||||||||
2004 | 2003 | 2003 | 2002 | 2001 | 2000 | 1999 | ||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||||||
Pretax income (loss) | 12,624 | 20,316 | 20,996 | 19,909 | 31,342 | (20,749 | ) | (15,517 | ) | |||||||||||||||||||
Fixed charges net of capitalized interest | 41,110 | 32,825 | 46,157 | 44,256 | 47,003 | 49,466 | 51,926 | |||||||||||||||||||||
Amortization of capitalized interest | 86 | 46 | 75 | 45 | 40 | 56 | — | |||||||||||||||||||||
Earnings before taxes and combined fixed charges and preference dividends | 53,820 | 53,187 | 67,228 | 64,210 | 78,385 | 28,773 | 36,409 | |||||||||||||||||||||
Fixed charges: | ||||||||||||||||||||||||||||
Interest expense | 39,906 | 32,408 | 44,681 | 43,605 | 44,638 | 46,957 | 49,950 | |||||||||||||||||||||
Capitalized interest | — | — | — | (711 | ) | — | — | (1,190 | ) | |||||||||||||||||||
Dividends on preferred membership interest | 72 | 72 | 95 | 95 | 95 | 96 | 95 | |||||||||||||||||||||
Portions of rent which represent an interest factor | 1,132 | 345 | 1,381 | 1,267 | 2,270 | 2,413 | 3,071 | |||||||||||||||||||||
Total combined fixed charges and preference dividends | 41,110 | 32,825 | 46,157 | 44,256 | 47,003 | 49,466 | 51,926 | |||||||||||||||||||||
Ratio of earnings to combined fixed charges and preference dividends | 1.31x | 1.62x | 1.46x | 1.45x | 1.67x | (a | ) | (a | ) |
(a) The deficiency of earnings to cover fixed charges and preference dividends was $20,693 and $15,517 for the years ended December 31, 2000 and 1999, respectively.