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Content analysis
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H.S. freshman Avg
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Exhibit 12.1
Alpha Natural Resources, Inc. and Subsidiaries
Computation of Ratio of Earnings to Fixed Charges
(Amounts in thousands except ratios)
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| Years Ended December 31, |
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| 2011 |
| 2010 |
| 2009 |
| 2008 |
| 2007 |
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Earnings: |
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Income from continuing operations before income taxes |
| $ | (716,317 | ) | $ | 101,436 |
| $ | 33,784 |
| $ | 250,841 |
| $ | 42,838 |
|
Adjustments: |
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Fixed charges |
| 178,229 |
| 83,184 |
| 92,732 |
| 56,811 |
| 43,733 |
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Loss from equity investees |
| 1,268 |
| 1,706 |
| 189 |
| 574 |
| 1,352 |
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Amortization of capitalized interest |
| 106 |
| 106 |
| 137 |
| 132 |
| 75 |
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Capitalized interest |
| (1,925 | ) | (2,152 | ) | (492 | ) | (772 | ) | (1,038 | ) | |||||
|
| $ | (538,639 | ) | $ | 184,280 |
| $ | 126,350 |
| $ | 307,586 |
| $ | 86,960 |
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Fixed Charges: |
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Interest expense |
| $ | 141,914 |
| $ | 73,463 |
| $ | 82,825 |
| $ | 39,812 |
| 40,366 |
| |
Loss on early extinguishment of debt |
| 10,026 |
| 1,349 |
| 5,641 |
| 14,702 |
| — |
| |||||
Portion of rental expense representative of interest |
| 24,364 |
| 6,220 |
| 3,774 |
| 1,525 |
| 2,329 |
| |||||
Capitalized interest |
| 1,925 |
| 2,152 |
| 492 |
| 772 |
| 1,038 |
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|
| $ | 178,229 |
| $ | 83,184 |
| $ | 92,732 |
| $ | 56,811 |
| $ | 43,733 |
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Ratio of earnings to fixed charges |
| N/A | (1) | 2.22 |
| 1.36 |
| 5.41 |
| 1.99 |
|
(1) The ratio of earnings to fixed charges was less than one-to-one for the year ended December 31, 2011. Additional earnings of $716.1 million would be needed to have a one-to-one ratio of earnings to fixed charges.