EX-12.1 7 dp13023_ex1201.htm EXHIBIT 12.1
Exhibit 12.1

PATRIOT COAL CORPORATION
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
(Dollars in thousands)
 
   
Year Ended December 31,
 
   
2008
   
2007
   
2006
   
2005
   
2004
 
Ratio of Earnings to Fixed Charges:
                             
Earnings:
                             
Pre-tax income from continuing operations before adjustment for minority interest in consolidated subsidiaries or income or loss from equity investees
    $147,765       $(102,209 )     $5,967       $19,209       $(78,744 )
Add:
                                       
Fixed Charges
    28,698       14,712       17,096       15,922       18,480  
Amortization of capitalized interest
    212       203       157       122       112  
Distributions from equity investees
    -       -       9,935       7,552       6,184  
Less:
                                       
Interest capitalized
    (89 )     (464 )     (348 )     (106 )     (153 )
Distributions on preferred securities of consolidated subsidiaries
    -       -       -       -       -  
Total earnings
    $176,586       $(87,758 )     $32,807       $42,699       $(54,121 )
Fixed charges:
                                       
Interest expense
    $16,744       $8,123       $11,419       $9,833       $12,701  
Interest capitalized
    89       464       348       106       153  
Amortization of capitalized expenses related to indebtedness
    2,782       214       -       -       -  
Rental Expense interest factor
    9,083       6,196       5,685       5,983       5,626  
Distributions on preferred securities of consolidated subsidiaries
    -       -       -       -       -  
Minority Interest share of fixed charges
    -       (285 )     (356 )     -       -  
Total fixed charges
    $28,698       $14,712       $17,096       $15,922       $18,480  
Ratio of earnings to fixed charges
    6.2x       N/A       1.9x       2.7x       N/A  
Coverage deficiency (1)
    N/A       $102,470       N/A       N/A       $72,601  
 
(1)   Represents the dollar amount of the coverage deficiency, as earnings are inadequate to cover fixed charges.