EX-12.1 5 anr-2012930x10qexhibit121.htm RATIO OF EARNINGS TO FIXED CHARGES ANR-2012.9.30-10QExhibit12.1


Exhibit 12.1

Alpha Natural Resources, Inc. and Subsidiaries
Computation of Ratio of Earnings to Fixed Charges
(Amounts in thousands except ratio)

 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2012
 
2011
 
2012
 
2011
Earnings:
 
 
 
 
 
 
 
 
Income (loss) before income taxes
 
$
(129,328
)
 
$
59,379

 
$
(2,886,333
)
 
$
64,628

Adjustments:
 
 
 
 
 
 
 
 
Fixed charges
 
53,918
 
 
65,038
 
 
162,004
 
 
121,096
 
Income (loss) from equity investees
 
491
 
 
(1,396
)
 
1,302
 
 
(871
)
Amortization of capitalized interest
 
16
 
 
28
 
 
120
 
 
80
 
Capitalized interest
 
(13
)
 
(921
)
 
(1,191
)
 
(1,039
)
 
 
$
(74,916
)
 
$
122,128

 
$
(2,724,098
)
 
$
183,894

 
 
 
 
 
 
 
 
 
Fixed Charges:
 
 
 
 
 
 
 
 
Interest expense
 
$
47,345

 
$
49,148

 
$
139,313

 
$
94,726

Loss on early extinguishment of debt
 
 
—

 
 
5,212

 
 
—

 
 
9,768

Portion of rental expense representative of interest
 
6,560
 
 
9,757
 
 
21,500
 
 
15,563
 
Capitalized interest
 
13
 
 
921
 
 
1,191
 
 
1,039
 
 
 
$
53,918

 
$
65,038

 
$
162,004

 
$
121,096

 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
 
N/A(1)
 
1.88
 
N/A(1)
 
1.52


(1)
The ratio of earnings to fixed charges was less than one-to-one for the three months ended September 30, 2012 and for the nine months ended September 30, 2012. Additional earnings of $128.8 million and $2.9 billion respectively would be needed to have a one-to-one ratio of earnings to fixed charges.