Exhibit 12
LSB Industries, Inc.
Unaudited Computation of Ratios of Earnings to Fixed Charges and Combined Fixed Charges and Preferred Stock Dividends
(Dollars In Thousands)
Year Ended December 31, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
2007 | 2008 | 2009 | 2010 | 2011 | 2011 | 2012 | ||||||||||||||||||||||
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 | $ | 89,189 | $ | 73,764 | ||||||||||||||
Add: | ||||||||||||||||||||||||||||
Fixed charges | 15,674 | 12,042 | 8,001 | 7,254 | 6,548 | 5,273 | 4,514 | |||||||||||||||||||||
Share of distributed income of 50% owned affiliate | 765 | 735 | 785 | 825 | 1,649 | 1,223 | 1,285 | |||||||||||||||||||||
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Adjusted Earnings | $ | 64,636 | $ | 67,176 | $ | 44,663 | $ | 56,578 | $ | 137,846 | $ | 95,685 | $ | 79,563 | ||||||||||||||
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Fixed Charges | ||||||||||||||||||||||||||||
Interest expense (1) | $ | 11,723 | $ | 8,510 | $ | 6,016 | $ | 5,900 | $ | 4,733 | $ | 3,656 | $ | 3,285 | ||||||||||||||
Estimate of interest in rental expense | 3,951 | 3,532 | 1,985 | 1,354 | 1,815 | 1,617 | 1,229 | |||||||||||||||||||||
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Fixed Charges | $ | 15,674 | $ | 12,042 | $ | 8,001 | $ | 7,254 | $ | 6,548 | $ | 5,273 | $ | 4,514 | ||||||||||||||
Preferred stock dividends | 5,912 | 463 | 519 | 509 | 473 | 488 | 473 | |||||||||||||||||||||
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Combined fixed charges and preferred stock dividends | $ | 21,586 | $ | 12,505 | $ | 8,520 | $ | 7,763 | $ | 7,021 | $ | 5,761 | $ | 4,987 | ||||||||||||||
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Ratio of earnings to fixed charges | 4.1 | 5.6 | 5.6 | 7.8 | 21.1 | 18.1 | 17.6 | |||||||||||||||||||||
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Ratio of earnings to combined fixed charges and preferred stock dividends | 3.0 | 5.4 | 5.2 | 7.3 | 19.6 | 16.6 | 16.0 | |||||||||||||||||||||
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(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. |