EX-12.1 63 d631058dex121.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 |  |  |  | 5,365 |  |  |  | 19,027 |
Amortization of capitalized interest |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1 |  |  |  | 26 |
Share of distributed income of 50% owned affiliate |  |  | 785 |  |  |  | 825 |  |  |  | 1,649 |  |  |  | 1,782 |  |  |  | 1,719 |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest capitalized |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (398 | ) |  |  | (3,959 | )
Adjusted earnings |  | $ | 44,663 |  |  | $ | 56,578 |  |  | $ | 137,846 |  |  | $ | 98,449 |  |  | $ | 106,939 |
Fixed charges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense, net (1) |  | $ | 6,016 |  |  | $ | 5,900 |  |  | $ | 4,733 |  |  | $ | 3,715 |  |  | $ | 13,953 |
Interest capitalized |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 398 |  |  |  | 3,959 |
Estimate of interest in rental expense |  |  | 1,985 |  |  |  | 1,354 |  |  |  | 1,815 |  |  |  | 1,252 |  |  |  | 1,115 |
Fixed charges |  |  | 8,001 |  |  |  | 7,254 |  |  |  | 6,548 |  |  |  | 5,365 |  |  |  | 19,027 |
Preferred stock dividends |  |  | 519 |  |  |  | 509 |  |  |  | 473 |  |  |  | 472 |  |  |  | 493 |
Combined fixed charges and preferred stock dividends |  | $ | 8,520 |  |  | $ | 7,763 |  |  | $ | 7,021 |  |  | $ | 5,837 |  |  | $ | 19,520 |
Ratio of earnings to fixed charges |  |  | 5.6 |  |  |  | 7.8 |  |  |  | 21.1 |  |  |  | 18.4 |  |  |  | 5.6 |
Ratio of earnings to combined fixed charges and preferred stock dividends |  |  | 5.2 |  |  |  | 7.3 |  |  |  | 19.6 |  |  |  | 16.9 |  |  |  | 5.5 |

(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.