EX-12.1 4 d635174dex121.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)

|  | 2009 |  |  | 2010 |  |  | 2011 |  |  | 2012 |  |  | 2013 |
Income from continuing operations before provisions for income taxes and equity in earnings of affiliate |  | $ | 35,877 |  |  | $ | 48,499 |  |  | $ | 129,649 |  |  | $ | 91,699 |  |  | $ | 90,126 |
Add: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed charges |  |  | 8,001 |  |  |  | 7,254 |  |  |  | 6,548 |  |  |  | 4,967 |  |  |  | 15,068 |
Share of distributed income of 50% owned affiliate |  |  | 785 |  |  |  | 825 |  |  |  | 1,649 |  |  |  | 1,782 |  |  |  | 1,719 |
Adjusted Earnings |  | $ | 44,663 |  |  | $ | 56,578 |  |  | $ | 137,846 |  |  | $ | 98,448 |  |  | $ | 106,913 |
Fixed charges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense (1) |  | $ | 6,016 |  |  | $ | 5,900 |  |  | $ | 4,733 |  |  | $ | 3,715 |  |  | $ | 13,953 |
Estimate of interest in rental expense |  |  | 1,985 |  |  |  | 1,354 |  |  |  | 1,815 |  |  |  | 1,252 |  |  |  | 1,115 |
Fixed charges: |  | $ | 8,001 |  |  | $ | 7,254 |  |  | $ | 6,548 |  |  | $ | 4,967 |  |  | $ | 15,068 |
Preferred stock dividends |  |  | 519 |  |  |  | 509 |  |  |  | 473 |  |  |  | 472 |  |  |  | 493 |
Combined fixed charges and preferred stock dividends |  | $ | 8,520 |  |  | $ | 7,763 |  |  | $ | 7,021 |  |  | $ | 5,439 |  |  | $ | 15,561 |
Ratio of earnings to fixed charges |  |  | 5.6 |  |  |  | 7.8 |  |  |  | 21.1 |  |  |  | 19.8 |  |  |  | 7.1 |
Ratio of earnings to combined fixed charges and preferred stock dividends |  |  | 5.2 |  |  |  | 7.3 |  |  |  | 19.6 |  |  |  | 18.1 |  |  |  | 6.9 |

(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.