EX-12.1 7 a13-8581_1ex12d1.htm EX-12.1

Exhibit 12.1

 

Computation of Ratio of Earnings to Combined Fixed Charges and Preference Dividends

 

 

 

Three Months Ended March 31,

 

 

 

2013

 

2012

 

Earnings (loss):

 

 

 

 

 

 

 

 

 

 

 

Pretax income excluding income or loss from equity investments

 

$

(126,203

)

$

(22,219

)

Adjustments:

 

 

 

 

 

Fixed charges

 

101,615

 

79,741

 

Distributed income from equity investments

 

—

 

1,801

 

Capitalized interest, net of amortization

 

(3,315

)

(930

)

Arch Western Resources, LLC dividends on preferred membership interest

 

—

 

335

 

Total earnings (loss)

 

$

(27,903

)

$

58,728

 

Fixed charges:

 

 

 

 

 

Interest expense

 

$

95,087

 

$

74,772

 

Capitalized interest

 

4,133

 

2,430

 

Arch Western Resources, LLC dividends on preferred membership interest

 

—

 

(335

)

Portions of rent which represent an interest factor

 

2,395

 

2,874

 

Total fixed charges

 

$

101,615

 

$

79,741

 

Preferred stock dividends

 

$

—

 

$

—

 

Total fixed charges and preferred stock dividends

 

$

101,615

 

$

79,741

 

 

 

 

 

 

 

Ratio of earnings to combined fixed charges and preference dividends

 

N/A

 

0.74

 

 

Earnings consist of income from operations before income taxes and are adjusted to include only distributed income from affiliates accounted for on the equity method and fixed charges (excluding capitalized interest).  Fixed charges consist of interest incurred on indebtedness, the portion of operating lease rentals deemed representative of the interest factor and the amortization of debt expense.