EXHIBIT 12.1
MASSEY ENERGY COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In thousands, except ratios)
| Year Ended October 31, | Two Months 2001 | Year Ended December 31, | Three Months Ended March 31, | |||||||||||||||||||||||||||||
| 1999 | 2000 | 2001 | 2002 | 2003 | 2003 | 2004 | ||||||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||||||||||
Income (Loss) before taxes | $ | 151,532 | $ | 121,766 | $ | (15,921 | ) | $ | (23,524 | ) | $ | (57,520 | ) | $ | (60,651 | ) | $ | (17,763 | ) | $ | (7,760 | ) | ||||||||||
Fixed charges | 8,092 | 9,659 | 51,585 | 7,971 | 52,413 | 67,501 | 13,935 | 16,578 | ||||||||||||||||||||||||
Capitalized interest | (382 | ) | — | — | — | |||||||||||||||||||||||||||
Amortization of capitalized interest | — | — | — | — | 5 | 20 | 5 | 5 | ||||||||||||||||||||||||
Earnings (Loss) before taxes and fixed charges | $ | 159,624 | $ | 131,425 | $ | 35,664 | $ | (15,553 | ) | $ | (5,484 | ) | $ | 6,870 | $ | (3,824 | ) | $ | 8,823 | |||||||||||||
Fixed charges: | ||||||||||||||||||||||||||||||||
Interest expense | $ | 803 | $ | 347 | $ | 34,214 | $ | 5,302 | $ | 35,302 | $ | 48,259 | $ | 9,238 | $ | 12,576 | ||||||||||||||||
Capitalized interest | — | — | — | — | 382 | — | — | — | ||||||||||||||||||||||||
Interest portion of rental expense | 7,289 | 9,312 | 17,371 | 2,669 | 16,729 | 19,242 | 4,697 | 4,002 | ||||||||||||||||||||||||
Total fixed charges | $ | 8,092 | $ | 9,659 | $ | 51,585 | $ | 7,971 | $ | 52,413 | $ | 67,501 | $ | 13,935 | $ | 16,578 | ||||||||||||||||
Ratio of earnings to fixed charges | 19.7 | x | 13.6 | x | (a | ) | (a | ) | (a | ) | (a | ) | (a | ) | (a | ) | ||||||||||||||||
| (a) | Earnings for the three months ended March 31, 2004 and March 31, 2003, for the years ended December 31, 2003, December 31, 2002 and October 31, 2001 and for the two months ended December 31, 2001, were inadequate to cover fixed charges, with a deficiency of $7.8 million, $17.8 million, $60.6 million, $57.9 million, $15.9 million and $23.5 million, respectively. |