EX-12.1 7 dex121.htm EXHIBIT 12.1 Exhibit 12.1

EXHIBIT 12.1

MASSEY ENERGY COMPANY

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(In thousands, except ratios)

 

     Year Ended December 31,     Six Months Ended
June 30,
     2007    2006    2005     2004     2003     2008     2007

Earnings:

                

Income (Loss) before taxes

   $ 129,503    $ 45,024    $ (75,410 )   $ (5,643 )   $ (60,651 )   $ (72,555 )   $ 84,846

Fixed charges

     86,568      100,591      80,351       74,502       67,501       49,399       49,200

Capitalized interest

     —        —        —         —         —         —         —  

Amortization of capitalized interest

     20      20      20       20       20       10       10
                                                    

Earnings (Loss) before taxes and fixed charges

   $ 216,091    $ 145,635    $ 4,961     $ 68,729     $ 6,870     $ (23,146 )   $ 134,056

Fixed charges:

                

Interest expense

   $ 74,145    $ 86,076    $ 67,064     $ 60,660     $ 48,259     $ 41,763     $ 43,067

Capitalized interest

     —        —        —         —         —         —         —  

Interest portion of rental expense

     12,423      14,515      13,287       13,842       19,242       7,636       6,133
                                                    

Total fixed charges

   $ 86,568    $ 100,591    $ 80,351     $ 74,502     $ 67,501     $ 49,399     $ 49,200

Ratio of earnings to fixed charges(1)(2)

     2.5x      1.4x      (1 )     (1 )     (1 )     (1 )     2.7x

 

(1) For purposes of computing the ratio of earnings to fixed charges, “earnings” consist of income from operations before income taxes plus fixed charges. “Fixed charges” consist of interest and debt expense, capitalized interest and a portion of rent expense we believe to be representative of interest. Earnings for the for the years ended December 31, 2005, 2004 and 2003 and for the six months ended June 30, 2008, were inadequate to cover fixed charges, with a deficiency of $75.4 million, $5.6 million, $60.6 million and $72.5 million, respectively.
(2) There were no preferred stock dividends during any of the periods presented above. As a result, the ratio of earnings to fixed charges and preferred stock dividends is the same as the ratio of earnings to fixed charges.