EX-12.1 11 lxu-ex121_534.htm EX-12.1 lxu-ex121_534.htm

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)

 

 

 

2011

 

 

2012

 

 

2013

 

 

2014

 

 

2015

 

Income (loss) from continuing operations before provisions (benefit) for income taxes and equity in earnings of affiliate

 

$

129,649

 

 

$

91,699

 

 

$

90,126

 

 

$

32,044

 

 

$

(58,257)

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges

 

 

6,548

 

 

 

5,365

 

 

 

19,027

 

 

 

37,166

 

 

 

40,319

 

Amortization of capitalized interest

 

 

—

 

 

 

1

 

 

 

26

 

 

 

79

 

 

 

152

 

Share of distributed income of 50% owned affiliate

 

 

1,649

 

 

 

1,782

 

 

 

1,719

 

 

 

590

 

 

 

—

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest capitalized (1)

 

 

—

 

 

 

(398

)

 

 

(3,959

)

 

 

(14,104

)

 

 

(30,625)

 

Adjusted earnings

 

$

137,846

 

 

$

98,449

 

 

$

106,939

 

 

$

55,775

 

 

$

(48,411)

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net (2)

 

$

4,733

 

 

$

3,715

 

 

$

13,953

 

 

$

21,528

 

 

$

7,334

 

Interest capitalized

 

 

—

 

 

 

398

 

 

 

3,959

 

 

 

14,104

 

 

 

30,625

 

Estimate of interest in rental expense

 

 

1,815

 

 

 

1,252

 

 

 

1,115

 

 

 

1,534

 

 

 

2,360

 

Fixed charges

 

 

6,548

 

 

 

5,365

 

 

 

19,027

 

 

 

37,166

 

 

 

40,319

 

Preferred stock dividends (3)

 

 

473

 

 

 

472

 

 

 

493

 

 

 

489

 

 

 

3,273

 

Combined fixed charges and preferred stock dividends

 

$

7,021

 

 

$

5,837

 

 

$

19,520

 

 

$

37,655

 

 

$

43,592

 

Ratio of earnings to fixed charges

 

 

21.1

 

 

 

18.4

 

 

 

5.6

 

 

 

1.5

 

 

 

—

 

Insufficient coverage (4)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

88,730

 

Ratio of earnings to combined fixed charges and preferred stock dividends

 

 

19.6

 

 

 

16.9

 

 

 

5.5

 

 

 

1.5

 

 

 

—

 

Insufficient coverage (4)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

92,003

 

 

(1)

Interest capitalized during the period is deducted because fixed charges include all interest, whether capitalized or expensed. Only fixed charges that were deducted from income from continuing operations before income taxes should be added back in the earnings computation.

(2)

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.

(3)

Preferred stock dividends include the accretion of the carrying value of preferred stock, when applicable.

(4)

For 2015, earnings were inadequate to cover fixed charges and combined fixed charges and preferred stock dividends.