EX-12.1 3 c13155exv12w1.htm COMPUTATION OF EARNINGS TO FIXED CHARGES exv12w1
 

Exhibit 12.1
VeraSun Energy Corporation
Computation of Ratio of Earnings to Fixed Charges
                                         
    Year Ended December 31,  
    2006     2005     2004     2003     2002  
    (dollars in thousands)  
Fixed charges:
                                       
Interest expense (including amortized debt issuance cost)
  $ 37,871     $ 23,353     $ 8,892     $ 839     $  
Capitalized interest
    3,622       3,534       11       1,721       62  
 
                             
Total fixed charges
    41,493       26,887       8,903       2,560       62  
 
                                       
Add amortization of capitalized interest
    262       127       82              
Less interest capitalized
    (3,622 )     (3,534 )     (11 )     (1,721 )     (62 )
Income (loss) before income taxes and minority interest
    130,077       774       24,913       1,163       (1,215 )
 
                             
Total earnings (loss) before fixed charges
  $ 168,210     $ 24,254     $ 33,887     $ 2,002       ($1,215)  
 
                             
 
                                       
Ratio of earnings to fixed charges(1)
    4.05       0.90 (2)     3.81       0.78 (2)     *  
 
(1)   For the purpose of determining the ratio of earnings to fixed charges, earnings are defined as pretax income from continuing operations before adjustment for minority interest in consolidated subsidiary plus fixed charges and amortization of capitalized interest, less capitalized interest. Fixed charges consist of interest expense, which includes amortized debt issuance costs and capitalized interest.
 
(2)   The additional earnings needed to cover fixed charges in 2005 and 2003 were $2.6 million and $558,000, respectively.
 
*   Our earnings were inadequate to cover fixed charges for the year ended December 31, 2002. Earnings were $1.3 million less than fixed charges.