Exhibit 12.1
Foundation Coal Holdings, Inc.
Computation of Ratio of Earnings to Fixed Charges
(Amounts in millions except ratio)
| | Successor | | Predecessor | |
| | Twelve Months
Ended
December 31, | | For the Period
From
February 9, 2004
(date of formation)
Through
December 31, | | Seven Months
Ended
July 29, | | Twelve Months Ended December 31, | |
| | 2005 | | 2004 | | 2004 | | 2003 | | 2002 | | 2001 | |
Earnings: | | | | | | | | | | | | | | | | | | | |
Income (loss) from continuing operations before income tax | | | $ | 135.4 | | | | $ | 28.1 | | | | $ | (142.4 | ) | | $ | 25.8 | | $ | 38.2 | | $ | 20.0 | |
Adjustments: | | | | | | | | | | | | | | | | | | | |
Interest expense(a) | | | 63.2 | | | | 26.7 | | | | 20.3 | | | 51.2 | | 54.5 | | 58.3 | |
Minority interest of majority owned subsidiaries | | | — | | | | — | | | | — | | | — | | — | | (15.0 | ) |
Equity loss of affiliates | | | — | | | | — | | | | — | | | — | | — | | — | |
| | | $ | 198.6 | | | | $ | 54.8 | | | | $ | (122.1 | ) | | $ | 77.0 | | $ | 92.7 | | $ | 63.3 | |
Fixed Charges: | | | | | | | | | | | | | | | | | | | |
Interest expense | | | $ | 59.5 | | | | $ | 26.7 | | | | $ | 18.0 | | | $ | 46.9 | | $ | 48.9 | | $ | 52.5 | |
Portion of rental expense representative of interest | | | 3.7 | | | | 1.2 | | | | 2.3 | | | 4.3 | | 5.6 | | 5.8 | |
| | | $ | 63.2 | | | | $ | 27.9 | | | | $ | 20.3 | | | $ | 51.2 | | $ | 54.5 | | $ | 58.3 | |
Ratio of earnings to fixed charges | | | 3.1 | | | | 2.0 | | | | (b | ) | | 1.5 | | 1.7 | | 1.1 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(a) Includes interest expense and portion of rental expense representative of interest.
(b) The ratio was less than 1:1 for the period from January 1, 2004 to July 29, 2004 as earnings were inadequate to cover fixed charges by the deficiencies of $142.4 million.
