EX-12.1 4 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 October 31,
    

Two Months

Ended

December 31,

2001

    

Year Ended

December 31,

2002

    

Nine Months

Ended September 30,

  
     1998
     1999
     2000
     2001
         2002
     2003
  

Earnings:

                                                                 

(Loss) Income before taxes

    $ 185,699     $ 151,532     $ 121,766     $ (15,921 )   $ (23,524 )   $ (57,520 )   $ (37,831 )   $ (30,741 )

Fixed charges

      3,469       8,092       9,659       51,585       7,971       52,413       39,003       44,131  

Capitalized interest

      —         —         —         —         —         (382 )     —         —    

Amortization of capitalized interest

      —         —         —         —         —         5       —         15  
    
 
 
 
 
 
 
 

(Loss) earnings before taxes and fixed charges

    $ 189,168     $ 159,624     $ 131,425     $ 35,664     $ (15,553 )   $ (5,484 )   $ 1,172     $ 13,405  

Fixed charges:

                                                                 

Interest expense

    $ 514     $ 803     $ 347     $ 34,214     $ 5,302     $ 35,302     $ 26,356     $ 29,872  

Capitalized interest

      —         —         —         —         —         382       —         —    

Interest portion of rental expense

      2,955       7,289       9,312       17,371       2,669       16,729       12,647       14,259  
    
 
 
 
 
 
 
 

Total fixed charges

    $ 3,469     $ 8,092     $ 9,659     $ 51,585     $ 7,971     $ 52,413     $ 39,003     $ 44,131  

Ratio of earnings to fixed charges

      54.5 x     19.7 x     13.6 x       (a)       (a)       (a)       (a)       (a)
(a) Earnings for the nine months ended September 30, 2003 and September 30, 2002, for the years ended 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 $30.7 million, $37.8 million, $57.9 million, $15.9 million and $23.5 million, respectively.