EX-12.1 2 c21955exv12w1.htm EX-12.1
Exhibit 12.1
LSB Industries, Inc.
Unaudited Computation of Ratios of Earnings to Fixed Charges and Combined Fixed Charges and Preferred Stock Dividends
(Dollars In Thousands)

|  | 2007 |  |  | 2008 |  |  | 2009 |  |  | 2010 |  |  | 2011 |
Income from continuing operations before provisions for income taxes and equity in earnings of affiliate |  | $ | 48,197 |  |  | $ | 54,399 |  |  | $ | 35,877 |  |  | $ | 48,499 |  |  | $ | 129,649 |
Add: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed charges |  |  | 15,674 |  |  |  | 12,042 |  |  |  | 8,001 |  |  |  | 7,254 |  |  |  | 6,548 |
Share of distributed income of 50% owned affiliate |  |  | 765 |  |  |  | 735 |  |  |  | 785 |  |  |  | 825 |  |  |  | 1,649 |
Adjusted Earnings |  | $ | 64,636 |  |  | $ | 67,176 |  |  | $ | 44,663 |  |  | $ | 56,578 |  |  | $ | 137,846 |
Fixed Charges |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense (1) |  | $ | 11,723 |  |  | $ | 8,510 |  |  | $ | 6,016 |  |  | $ | 5,900 |  |  | $ | 4,733 |
Estimate of interest in rental expense |  |  | 3,951 |  |  |  | 3,532 |  |  |  | 1,985 |  |  |  | 1,354 |  |  |  | 1,815 |
Fixed Charges |  | $ | 15,674 |  |  | $ | 12,042 |  |  | $ | 8,001 |  |  | $ | 7,254 |  |  | $ | 6,548 |
Preferred stock dividends |  |  | 5,912 |  |  |  | 463 |  |  |  | 519 |  |  |  | 509 |  |  |  | 473 |
Combined fixed charges and preferred stock dividends |  | $ | 21,586 |  |  | $ | 12,505 |  |  | $ | 8,520 |  |  | $ | 7,763 |  |  | $ | 7,021 |
Ratio of earnings to fixed charges |  |  | 4.1 |  |  |  | 5.6 |  |  |  | 5.6 |  |  |  | 7.8 |  |  |  | 21.1 |
Ratio of earnings to combined fixed charges and preferred stock dividends |  |  | 3.0 |  |  |  | 5.4 |  |  |  | 5.2 |  |  |  | 7.3 |  |  |  | 19.6 |

(1) |  | Interest expense includes amortization of deferred debt issuance costs and excludes realized and unrealized gains or losses on interest rate financial instruments that are reported as interest expense.