Exhibit 99.2
PATRIOT COAL CORPORATION
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
(Dollars in thousands)
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
(Dollars in thousands)
Three Months Ended March 31, | Year Ended December 31, | |||||||||||||||||||||||||||
2010 | 2009 | 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||||||
Ratio of Earnings to Fixed Charges: | ||||||||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||||||
Pre-tax income from continuing operations before adjustment for noncontrolling interest in consolidated subsidiaries or income or loss from equity investees | $ | 4,048 | $ | 32,374 | $ | 126,846 | $ | 143,643 | $ | (102,209 | ) | $ | 5,967 | $ | 19,209 | |||||||||||||
Add: | ||||||||||||||||||||||||||||
Fixed Charges | 11,622 | 11,752 | 50,218 | 32,820 | 14,712 | 17,096 | 15,922 | |||||||||||||||||||||
Amortization of capitalized interest | 271 | 216 | 267 | 212 | 203 | 157 | 122 | |||||||||||||||||||||
Distributions from equity investees | — | — | 1,000 | — | — | 9,935 | 7,552 | |||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||
Interest capitalized | (164 | ) | (151 | ) | (546 | ) | (89 | ) | (464 | ) | (348 | ) | (106 | ) | ||||||||||||||
Distributions on preferred securities of consolidated subsidiaries | — | — | — | — | — | — | — | |||||||||||||||||||||
Total earnings | $ | 15,777 | $ | 44,191 | $ | 177,785 | $ | 176,586 | $ | (87,758 | ) | $ | 32,807 | $ | 42,699 | |||||||||||||
Fixed charges: | ||||||||||||||||||||||||||||
Interest expense | $ | 8,021 | $ | 7,683 | $ | 34,392 | $ | 21,037 | $ | 8,123 | $ | 11,419 | $ | 9,833 | ||||||||||||||
Interest capitalized | 164 | 151 | 546 | 89 | 464 | 348 | 106 | |||||||||||||||||||||
Amortization of capitalized expenses related to indebtedness | 1,011 | 910 | 3,716 | 2,611 | 214 | — | — | |||||||||||||||||||||
Rental Expense interest factor | 2,426 | 3,008 | 11,564 | 9,083 | 6,196 | 5,685 | 5,983 | |||||||||||||||||||||
Distributions on preferred securities of consolidated subsidiaries | — | — | — | — | — | — | — | |||||||||||||||||||||
Noncontrolling Interest share of fixed charges | — | — | — | — | (285 | ) | (356 | ) | — | |||||||||||||||||||
Total fixed charges | $ | 11,622 | $ | 11,752 | $ | 50,218 | $ | 32,820 | $ | 14,712 | $ | 17,096 | $ | 15,922 | ||||||||||||||
Ratio of earnings to fixed charges | 1.4x | 3.8x | 3.5x | 5.4x | (1) | N/A | 1.9x | 2.7x | ||||||||||||||||||||
Coverage deficiency (2) | N/A | N/A | N/A | N/A | $ | 102,470 | N/A | N/A | ||||||||||||||||||||
(1) | The ratio of earnings to fixed charges for the year ended December 31, 2008 has been adjusted to reflect the retrospective application of authoritative guidance. | |
(2) | Represents the dollar amount of the coverage deficiency, as earnings are inadequate to cover fixed charges. |