Exhibit 12.1
MASSEY ENERGY COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In thousands, except ratios)
Year Ended December 31, | Two Months Ended December 31, | Year Ended October 31, | Nine Months Ended September 30, 2005 | |||||||||||||||||||||
2004 | 2003 | 2002 | 2001 | 2001 | 2000 | Actual | As Adjusted (a) | |||||||||||||||||
Earnings: | ||||||||||||||||||||||||
Income (Loss) before taxes | $ | (5,643) | $ | (60,651) | $ | (57,520) | $ | (23,524) | $ | (15,921) | $ | 121,766 | $ | 130,031 | $ | 114,592 | ||||||||
Fixed charges | 74,502 | 67,501 | 52,413 | 7,971 | 51,585 | 9,659 | 53,786 | 69,225 | ||||||||||||||||
Capitalized interest | — | — | (382) | — | — | |||||||||||||||||||
Amortization of capitalized interest | 20 | 20 | 5 | — | — | — | 15 | 15 | ||||||||||||||||
Earnings (Loss) before taxes and fixed charges | $ | 68,879 | $ | 6,870 | $ | (5,484) | $ | (15,553) | $ | 35,664 | $ | 131,425 | $ | 183,832 | $ | 183,832 | ||||||||
Fixed charges: | ||||||||||||||||||||||||
Interest expense | $ | 60,660 | $ | 48,259 | $ | 35,302 | $ | 5,302 | $ | 34,214 | $ | 347 | $ | 43,843 | $ | 59,282 | ||||||||
Capitalized interest | — | — | 382 | — | — | — | — | — | ||||||||||||||||
Interest portion of rental expense | 13,842 | 19,242 | 16,729 | 2,669 | 17,371 | 9,312 | 9,943 | 9,943 | ||||||||||||||||
Total fixed charges | $ | 74,502 | $ | 67,501 | $ | 52,413 | $ | 7,971 | $ | 51,585 | $ | 9,659 | $ | 53,786 | $ | 69,225 | ||||||||
Ratio of earnings to fixed charges | (b) | (b) | (b) | (b) | (b) | 13.6x | 3.4x | 2.7x |
(a) | Reflects the initial private placement of the notes and the application of the net proceeds therefrom to fund the purchase and related redemption of $220.1 million in aggregate principal amount of the 6.95% Notes, the purchase of $131.3 million in aggregate principal amount of the 4.75% Notes and the exchange of $165.4 million in aggregate principal amount of the 2.25% Notes for shares of our common stock and a cash payment and including premiums, consent payments and related expenses. |
(b) | Earnings for the years ended December 31, 2004, 2003 and 2002, the two months ended December 31, 2001, and the year ended October 31, 2001, were inadequate to cover fixed charges, with a deficiency of $5.6 million, $60.6 million, $57.9 million, $23.5 million and $15.9 million, respectively. |