Exhibit 12.1
RATIO OF EARNINGS TO FIXED CHARGES
The table below sets forth the Ratios of Earnings to Fixed Charges for us for 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 years ended December 31, 2002, 2003, 2004, 2005 and 2006 reflect the financial results of Calumet Lubricants Co., Limited Partnership, our predecessor.
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| | | | | | | | | | | | | | | Calumet Specialty Products
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| | | | | | | | | | | | | | | Partners, L.P. | |
| | | Predecessor | | | | | | Six Months
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| | | Calumet Lubricants Co., Limited Partnership | | | | | | Ended
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| | | Year Ended December 31, | | | | | | June 30,
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| | | 2002 | | | 2003 | | | 2004 | | | 2005 | | | 2006(1) | | | 2007 | |
| | | (Unaudited) | |
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Earnings | | | | | | | | | | | | | | | | | | | | | | | | |
| Income (loss) from continuing operations | | $ | 5,470 | | | $ | (4,939 | ) | | $ | 8,281 | | | $ | 12,926 | | | $ | 95,768 | | | $ | 65,932 | |
| Fixed charges less capitalized interest | | | 12,148 | | | | 14,205 | | | | 14,473 | | | | 28,419 | | | | 14,822 | | | | 5,305 | |
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| Earnings (loss) from continuing operations before fixed charges | | $ | 17,618 | | | $ | 9,266 | | | $ | 22,754 | | | $ | 41,345 | | | $ | 110,590 | | | $ | 71,237 | |
Fixed charges | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest expense, net of capitalized interest | | $ | 7,435 | | | $ | 9,493 | | | $ | 9,869 | | | $ | 22,961 | | | $ | 9,030 | | | $ | 2,128 | |
| Capitalized interest, net of amortization | | | — | | | | — | | | | 302 | | | | 178 | | | | 1,938 | | | | 2,201 | |
| Estimated interest within rental expense | | | 4,713 | | | | 4,712 | | | | 4,604 | | | | 5,458 | | | | 5,792 | | | | 3,177 | |
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| Total fixed charges | | $ | 12,148 | | | $ | 14,205 | | | $ | 14,775 | | | $ | 28,597 | | | $ | 16,760 | | | $ | 7,506 | |
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| Ratio of earnings (loss) to fixed charges | | | 1.45 | | | | 0.65 | | | | 1.54 | | | | 1.45 | | | | 6.60 | | | | 9.49 | |
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| (1) | | The information presented for the year ended December 31, 2006 contains results of the 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, (b) amortization of capitalized interest, (c) distributed income of equity investees, and (d) our share of pre-tax losses of equity investees for which charges arising from guarantees are included in fixed charges, less (a) interest capitalized, (b) preference security dividend requirements of consolidated subsidiaries, and (c) the minority interest in pre-tax income of subsidiaries that have not incurred fixed charges. Fixed charges consist of interest expensed and capitalized plus (a) amortized premiums, discounts and capitalized expenses related to indebtedness, (b) an estimate of the interest within rental expense, and (c) preference security dividend requirements of consolidated subsidiaries.
The earnings in 2003 were inadequate to cover fixed charges by $4.9 million.
