Exhibit 12.1
COMPUTATION OF HISTORICAL RATIOS OF EARNINGS TO FIXED CHARGES (1)
(in thousands, except ratio data)
CLOUD PEAK ENERGY INC.
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| Nine |
| Year Ended December 31, |
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| 2016 |
| 2015 |
| 2014 |
| 2013 |
| 2012 |
| 2011 |
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Earnings: |
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Income from continuing operations before income tax benefit (provision), earnings (loss) from unconsolidated affiliates and minority interest |
| $ | (4,878 | ) | $ | (128,720 | ) | $ | 113,294 |
| $ | 63,066 |
| $ | 234,778 |
| $ | 199,445 |
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Amortization of capitalized interest |
| 4,343 |
| 11,664 |
| 10,432 |
| 6,602 |
| 4,141 |
| 1,026 |
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Distributions of income from equity investments |
| 1,500 |
| — |
| 2,250 |
| 2,000 |
| 1,023 |
| 5,250 |
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Capitalized interest |
| (1,205 | ) | (1,018 | ) | (208 | ) | (29,378 | ) | (41,975 | ) | (44,883 | ) | ||||||
Fixed charges |
| 35,870 |
| 49,365 |
| 56,605 |
| 71,682 |
| 79,448 |
| 79,205 |
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Adjusted income from continuing operations before income tax provision |
| $ | 35,630 |
| $ | (68,709 | ) | $ | 182,373 |
| $ | 113,972 |
| $ | 277,415 |
| $ | 240,043 |
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Fixed charges: |
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Interest expense |
| $ | 34,117 |
| $ | 47,561 |
| $ | 55,622 |
| $ | 41,665 |
| $ | 36,327 |
| $ | 33,866 |
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Capitalized interest |
| 1,205 |
| 1,018 |
| 208 |
| 29,378 |
| 41,975 |
| 44,883 |
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Interest within rental expense |
| 548 |
| 786 |
| 775 |
| 639 |
| 1,146 |
| 456 |
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Total fixed charges |
| $ | 35,870 |
| $ | 49,365 |
| $ | 56,605 |
| $ | 71,682 |
| $ | 79,448 |
| $ | 79,205 |
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Ratio of earnings to fixed charges (2) |
| 1.0x |
| — |
| 3.2x |
| 1.6x |
| 3.5x |
| 3.0x |
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(1) For purposes of calculating the ratio of earnings to fixed charges, earnings were calculated by adding (i) earnings from continuing operations, (ii) interest expense, net, including the portion of rents representative of an interest factor, (iii) amortization of debt issue costs and capitalized interest, (iv) distributions from equity investments and (v) capitalized interest. Fixed charges consist of interest expense, net, amortization of debt issue costs, and the portions of rents representative of an interest factor.
(2) Earnings for 2015 were inadequate to cover fixed charges by $118.1 million.
