EX-12.1 6 dex121.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of ratio of earnings to fixed charges

Exhibit 12.1

STAR GAS PARTNERS, L.P.

STATEMENT OF COMPUTATION OF EARNINGS TO FIXED CHARGES

(In Thousands of Dollars, Except Ratio)

 

     Year Ended September 30     Six Months Ended
March 31
 
     2010(1)      2009      2008     2007      2006     2011      2010  

Earnings:

                  

Income (loss) before income taxes

   $ 43,952       $ 73,441       $ (12,842   $ 41,304       $ (53,442   $ 121,718       $ 92,453   

Add:

                  

Interest expense

     14,326         17,842         20,691        20,448         26,288        8,539         8,155   

Debt issuance amortization

     2,680         2,750         2,339        2,282         2,438        1,426         1,328   

Interest component of rent expense (2)

     4,426         5,278         4,626        4,418         4,458        2,264         2,130   
                                                            
   $ 65,384       $ 99,311       $ 14,814      $ 68,452       $ (20,258   $ 133,947       $ 104,066   
                                                            

Fixed charges:

                  

Interest expense

   $ 14,326       $ 17,842       $ 20,691      $ 20,448       $ 26,288      $ 8,539       $ 8,155   

Debt issuance amortization

     2,680         2,750         2,339        2,282         2,438        1,426         1,328   

Interest component of rent expense (2)

     4,426         5,278         4,626        4,418         4,458        2,264         2,130   
                                                            
   $ 21,432       $ 25,870       $ 27,656      $ 27,148       $ 33,184      $ 12,229       $ 11,613   
                                                            

Ratio(3)

     3.1         3.8         *        2.5         *        11.0         9.0   

 

(1) The following computation for the year ended September 30, 2010, reflect, on a pro-forma basis, earnings available for fixed charges, fixed charges and resultant ratios. The computation gives effect to our sale of $125 million (excluding discount) of 8.875% senior notes due 2017 and the use of a portion of the net proceeds to redeem our 10.25% senior notes due 2013.

 

(Amounts in 000’s, except ratio)

   2010  

Income as adjusted

   $ 65,384   

Fixed charges

   $ 21,432   

Pro-forma adjustments:

  

Net increases in interest resulting from the substitution of proceeds from sale of the 8.875%

  

Senior Notes for the 10.25% Senior Notes

     2,729   
        

Pro-forma fixed charges

   $ 24,161   
        

Pro-forma ratio of earnings to fixed charges

     2.71   

 

(2) One third of rent is the portion deemed representative of the interest component.
(3) Ratio is less than 1:1. Deficiency is $12.8 million and $53.4 million for the fiscal years ended September 30, 2008 and 2006, respectively.