EX-12.1 3 dex121.htm COMPUTATION OF RATIO OF EARNINGS COMPUTATION OF RATIO OF EARNINGS

EXHIBIT 12.1

 

MASSEY ENERGY COMPANY

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(In thousands, except ratios)

 

     Year Ended October 31,
    

Two Months
Ended
December 31,

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.