Exhibit 12.1
Foundation Coal Holdings, Inc.
Computation of Ratio of Earnings to Fixed Charges
(Amounts in millions except ratio)
| | Predeccessor
| | Successor
|
|---|
| | Year Ended December 31,
| | Period from
January 1 to
July 29,
2004
| | Period from
February 9 to
December 31,
2004
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|---|
| | 2000
| | 2001
| | 2002
| | 2003
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|---|
| | (unaudited)
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| |
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|---|
| Earnings: | | | | | | | | | | | | | | | | | | |
| | Income (loss) from continuing operations before income tax | | $ | (34.8 | ) | $ | 20.0 | | $ | 38.2 | | $ | 25.8 | | $ | (142.4 | ) | $ | 28.1 |
| | Adjustments: | | | | | | | | | | | | | | | | | | |
| | | Interest expense (a) | | | 60.9 | | | 58.3 | | | 54.5 | | | 51.2 | | | 20.3 | | | 26.7 |
| | | Minority interest of majority owned subsidiaries | | | (0.2 | ) | | (15.0 | ) | | — | | | — | | | — | | | — |
| | | Equity loss of affiliates | | | (1.7 | ) | | — | | | — | | | — | | | — | | | — |
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| | | $ | 24.2 | | $ | 63.3 | | $ | 92.7 | | $ | 77.0 | | $ | (122.1 | ) | $ | 54.8 |
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Fixed Charges: |
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| | Interest expense | | $ | 55.6 | | $ | 52.5 | | $ | 48.9 | | $ | 46.9 | | $ | 18.0 | | $ | 26.7 |
| | Portion of rental expense representative of interest | | | 5.3 | | | 5.8 | | | 5.6 | | | 4.3 | | | 2.3 | | | 1.2 |
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| | | $ | 60.9 | | $ | 58.3 | | $ | 54.5 | | $ | 51.2 | | $ | 20.3 | | $ | 27.9 |
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| Ratio of earnings to fixed charges | | | (b | ) | | 1.1 | | | 1.7 | | | 1.5 | | | (b | ) | | 2.0 |
- (a)
- Includes interest expense and portion of rental expense representative of interest.
- (b)
- The ratio was less than 1:1 for the period ended December 31, 2000 and for the period from January 1 to July 29, 2004 as earnings were inadequate to cover fixed charges by the deficiencies of $36.7 million and $142.4 million, respectively.
