Exhibit 12.1
STAR GAS PARTNERS, L.P.
STATEMENT OF COMPUTATION OF EARNINGS TO FIXED CHARGES
(In Thousands of Dollars, Except Ratio)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Year Ended September 30 | | | Six Months Ended March 31 | |
| | 2010(1) | | | 2009 | | | 2008 | | | 2007 | | | 2006 | | | 2011 | | | 2010 | |
Earnings: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Income (loss) before income taxes | | $ | 43,952 | | | $ | 73,441 | | | $ | (12,842 | ) | | $ | 41,304 | | | $ | (53,442 | ) | | $ | 121,718 | | | $ | 92,453 | |
Add: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | 14,326 | | | | 17,842 | | | | 20,691 | | | | 20,448 | | | | 26,288 | | | | 8,539 | | | | 8,155 | |
Debt issuance amortization | | | 2,680 | | | | 2,750 | | | | 2,339 | | | | 2,282 | | | | 2,438 | | | | 1,426 | | | | 1,328 | |
Interest component of rent expense (2) | | | 4,426 | | | | 5,278 | | | | 4,626 | | | | 4,418 | | | | 4,458 | | | | 2,264 | | | | 2,130 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 65,384 | | | $ | 99,311 | | | $ | 14,814 | | | $ | 68,452 | | | $ | (20,258 | ) | | $ | 133,947 | | | $ | 104,066 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fixed charges: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | $ | 14,326 | | | $ | 17,842 | | | $ | 20,691 | | | $ | 20,448 | | | $ | 26,288 | | | $ | 8,539 | | | $ | 8,155 | |
Debt issuance amortization | | | 2,680 | | | | 2,750 | | | | 2,339 | | | | 2,282 | | | | 2,438 | | | | 1,426 | | | | 1,328 | |
Interest component of rent expense (2) | | | 4,426 | | | | 5,278 | | | | 4,626 | | | | 4,418 | | | | 4,458 | | | | 2,264 | | | | 2,130 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 21,432 | | | $ | 25,870 | | | $ | 27,656 | | | $ | 27,148 | | | $ | 33,184 | | | $ | 12,229 | | | $ | 11,613 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ratio(3) | | | 3.1 | | | | 3.8 | | | | * | | | | 2.5 | | | | * | | | | 11.0 | | | | 9.0 | |
(1) | The following computation for the year ended September 30, 2010, reflect, on a pro-forma basis, earnings available for fixed charges, fixed charges and resultant ratios. The computation gives effect to our sale of $125 million (excluding discount) of 8.875% senior notes due 2017 and the use of a portion of the net proceeds to redeem our 10.25% senior notes due 2013. |
| | | | |
(Amounts in 000’s, except ratio) | | 2010 | |
Income as adjusted | | $ | 65,384 | |
Fixed charges | | $ | 21,432 | |
Pro-forma adjustments: | | | | |
Net increases in interest resulting from the substitution of proceeds from sale of the 8.875% | | | | |
Senior Notes for the 10.25% Senior Notes | | | 2,729 | |
| | | | |
Pro-forma fixed charges | | $ | 24,161 | |
| | | | |
Pro-forma ratio of earnings to fixed charges | | | 2.71 | |
(2) | One third of rent is the portion deemed representative of the interest component. |
(3) | Ratio is less than 1:1. Deficiency is $12.8 million and $53.4 million for the fiscal years ended September 30, 2008 and 2006, respectively. |