Exhibit 12.1
RATIO OF EARNINGS TO FIXED CHARGES
The table below sets forth the Ratio of Earnings to Fixed Charges for us for each of the periods indicated. On January 31, 2006, we completed our initial public offering whereby we became successor to the business of Calumet Lubricant Co., Limited Partnership. As such, the year ended December 31, 2005 and a portion of the year ended December 31, 2006 reflect the financial results of Calumet Lubricants Co., Limited Partnership, our predecessor.
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| | Calumet | | | Calumet Specialty Products Partners, L.P. | |
| | Lubricants | | | | | | | | | | | | | | | | | | | Nine | |
| | Co., Limited | | | | | | | | | | | | | | | | | | | Months | |
| | Partnership | | | | | | | | | | | | | | | | | | | Ended | |
| | Year Ended December 31, | | | September 30, | |
| | 2005 | | | 2006(1) | | | 2007 | | | 2008 | | | 2009 | | | 2010 | |
| | (Unaudited) | |
| | (Dollars in thousands) | |
Earnings | | | | | | | | | | | | | | | | | | | | | | | | |
Income from continuing operations | | $ | 12,926 | | | $ | 95,768 | | | $ | 83,375 | | | $ | 44,694 | | | $ | 61,936 | | | $ | 7,586 | |
Fixed charges less capitalized interest | | | 28,419 | | | | 14,822 | | | | 11,539 | | | | 45,450 | | | | 44,903 | | | | 32,966 | |
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Earnings from continuing operations before fixed charges | | $ | 41,345 | | | $ | 110,590 | | | $ | 94,914 | | | $ | 90,144 | | | $ | 106,839 | | | $ | 40,552 | |
Fixed charges | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense, net of capitalized interest | | $ | 22,961 | | | $ | 9,030 | | | $ | 4,717 | | | $ | 33,938 | | | $ | 33,573 | | | $ | 22,505 | |
Capitalized interest, net of amortization | | | 178 | | | | 1,938 | | | | 4,501 | | | | 6,909 | | | | 575 | | | | 234 | |
Estimated interest within rental expense | | | 5,458 | | | | 5,792 | | | | 6,822 | | | | 11,512 | | | | 11,330 | | | | 10,461 | |
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Total fixed charges | | $ | 28,597 | | | $ | 16,760 | | | $ | 16,040 | | | $ | 52,359 | | | $ | 45,478 | | | $ | 33,200 | |
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Ratio of earnings to fixed charges | | | 1.45 | | | | 6.60 | | | | 5.92 | | | | 1.72 | | | | 2.35 | | | | 1.22 | |
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(1) | | The information presented for the year ended December 31, 2006 contains results of our predecessor for the period of January 1, 2006 through January 31, 2006. |
For purposes of determining the ratio of earnings to fixed charges, earnings are defined as pre-tax income from continuing operations plus the following (a) fixed charges, and (b) amortization of capitalized interest, less interest capitalized. Fixed charges consist of interest expensed and capitalized plus (a) amortized discounts and capitalized expenses related to indebtedness, and (b) an estimate of the interest within rental expense.