EXHIBIT 12.1
MASSEY ENERGY COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In thousands, except ratios)
| | | Year Ended October 31,
| | | Two Months Ended December 31, 2001
| | | Year Ended December 31, 2002
| | | Nine Months Ended September 30,
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| | | 1998
| | | 1999
| | | 2000
| | | 2001
| | | | | 2002
| | | 2003
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Earnings: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(Loss) Income before taxes | | $ | 185,699 | | | $ | 151,532 | | | $ | 121,766 | | | $ | (15,921 | ) | | $ | (23,524 | ) | | $ | (57,520 | ) | | $ | (37,831 | ) | | $ | (30,741 | ) |
Fixed charges | | | 3,469 | | | | 8,092 | | | | 9,659 | | | | 51,585 | | | | 7,971 | | | | 52,413 | | | | 39,003 | | | | 44,131 | |
Capitalized interest | | | — | | | | — | | | | — | | | | — | | | | — | | | | (382 | ) | | | — | | | | — | |
Amortization of capitalized interest | | | — | | | | — | | | | — | | | | — | | | | — | | | | 5 | | | | — | | | | 15 | |
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(Loss) earnings before taxes and fixed charges | | $ | 189,168 | | | $ | 159,624 | | | $ | 131,425 | | | $ | 35,664 | | | $ | (15,553 | ) | | $ | (5,484 | ) | | $ | 1,172 | | | $ | 13,405 | |
Fixed charges: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | $ | 514 | | | $ | 803 | | | $ | 347 | | | $ | 34,214 | | | $ | 5,302 | | | $ | 35,302 | | | $ | 26,356 | | | $ | 29,872 | |
Capitalized interest | | | — | | | | — | | | | — | | | | — | | | | — | | | | 382 | | | | — | | | | — | |
Interest portion of rental expense | | | 2,955 | | | | 7,289 | | | | 9,312 | | | | 17,371 | | | | 2,669 | | | | 16,729 | | | | 12,647 | | | | 14,259 | |
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Total fixed charges | | $ | 3,469 | | | $ | 8,092 | | | $ | 9,659 | | | $ | 51,585 | | | $ | 7,971 | | | $ | 52,413 | | | $ | 39,003 | | | $ | 44,131 | |
Ratio of earnings to fixed charges | | | 54.5 | x | | | 19.7 | x | | | 13.6 | x | | | | (a) | | | | (a) | | | | (a) | | | | (a) | | | | (a) |
| (a) | Earnings for the nine months ended September 30, 2003 and September 30, 2002, for the years ended December 31, 2002 and October 31, 2001 and for the two months ended December 31, 2001, were inadequate to cover fixed charges, with a deficiency of $30.7 million, $37.8 million, $57.9 million, $15.9 million and $23.5 million, respectively. |
