EX-12.1 23 dex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

Exhibit 12.1

 

MASSEY ENERGY COMPANY

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(In thousands, except ratios)

 

     Year Ended December 31,

   Two Months
Ended
December 31,


  

Year Ended

October 31,


  

Nine Months Ended

September 30, 2005


     2004

   2003

   2002

   2001

   2001

   2000

   Actual

  

As

Adjusted (a)


Earnings:

                                                       

Income (Loss) before taxes

   $ (5,643)    $ (60,651)    $ (57,520)    $ (23,524)    $ (15,921)    $ 121,766    $ 130,031    $ 114,592

Fixed charges

     74,502      67,501      52,413      7,971      51,585      9,659      53,786      69,225

Capitalized interest

     —        —        (382)                           —        —  

Amortization of capitalized interest

     20      20      5      —        —        —        15      15
    

  

  

  

  

  

  

  

Earnings (Loss) before taxes and fixed charges

   $ 68,879    $ 6,870    $ (5,484)    $ (15,553)    $ 35,664    $ 131,425    $ 183,832    $ 183,832

Fixed charges:

                                                       

Interest expense

   $ 60,660    $ 48,259    $ 35,302    $ 5,302    $ 34,214    $ 347    $ 43,843    $ 59,282

Capitalized interest

     —        —        382      —        —        —        —        —  

Interest portion of rental expense

     13,842      19,242      16,729      2,669      17,371      9,312      9,943      9,943
    

  

  

  

  

  

  

  

Total fixed charges

   $ 74,502    $ 67,501    $ 52,413    $ 7,971    $ 51,585    $ 9,659    $ 53,786    $ 69,225

Ratio of earnings to fixed charges

     (b)      (b)      (b)      (b)      (b)      13.6x      3.4x      2.7x

(a) Reflects the initial private placement of the notes and the application of the net proceeds therefrom to fund the purchase and related redemption of $220.1 million in aggregate principal amount of the 6.95% Notes, the purchase of $131.3 million in aggregate principal amount of the 4.75% Notes and the exchange of $165.4 million in aggregate principal amount of the 2.25% Notes for shares of our common stock and a cash payment and including premiums, consent payments and related expenses.
(b) Earnings for the years ended December 31, 2004, 2003 and 2002, the two months ended December 31, 2001, and the year ended October 31, 2001, were inadequate to cover fixed charges, with a deficiency of $5.6 million, $60.6 million, $57.9 million, $23.5 million and $15.9 million, respectively.