Exhibit 12
TERRA INDUSTRIES INC.
RATIO OF EARNINGS TO FIXED CHARGES
(Amounts in Thousands, Except Ratio)
Year Ended December 31, | Three Months Ended March 31, | |||||||||||||||||||||||||||
1998 | 1999 | 2000 | 2001 | 2002 | 2002 | 2003 | ||||||||||||||||||||||
EARNINGS BEFORE INCOME TAXES | $ | (68,092 | ) | $ | (116,098 | ) | $ | (16,182 | ) | $ | (109,801 | ) | $ | (60,174 | ) | $ | (15,162 | ) | $ | (23,903 | ) | |||||||
Minority interest |
| 27,510 |
|
| 8,341 |
|
| 5,379 |
|
| (2,247 | ) |
| 1,510 |
|
| 546 |
|
| (1,718 | ) | |||||||
Equity investee income |
| (1,236 | ) |
| (787 | ) |
| (843 | ) |
| (953 | ) |
| (982 | ) |
| (291 | ) |
| (82 | ) | |||||||
Distributed income of equity investees |
| 1,180 |
|
| 950 |
|
| 800 |
|
| 600 |
|
| 700 |
|
| — |
|
| 600 |
| |||||||
Preference security dividend |
| (17,175 | ) |
| — |
|
| (1,119 | ) |
| ( 2,028 | ) |
| (1,846 | ) |
| — |
|
| (1,153 | ) | |||||||
| (57,813 | ) |
| (107,594 | ) |
| (11,965 | ) |
| (114,429 | ) |
| (60,792 | ) |
| (14,907 | ) |
| (26,256 | ) | ||||||||
FIXED CHARGES: | ||||||||||||||||||||||||||||
Interest expense |
| 51,122 |
|
| 53,076 |
|
| 51,511 |
|
| 53,594 |
|
| 53,800 |
|
| 13,296 |
|
| 12,552 |
| |||||||
Preference security dividend |
| 17,175 |
|
| — |
|
| 1,119 |
|
| 2,028 |
|
| 1,846 |
|
| — |
|
| 1,153 |
| |||||||
Deferred finance amortization |
| 2,994 |
|
| 1,232 |
|
| 1,155 |
|
| 3,271 |
|
| 2,790 |
|
| 566 |
|
| 697 |
| |||||||
Bond discounts |
| 22 |
|
| 22 |
|
| 22 |
|
| 7 |
|
| — |
|
| — |
|
| — |
| |||||||
Estimated interest expense component of operating leases |
| 6,864 |
|
| 6,798 |
|
| 5,940 |
|
| 5,049 |
|
| 5,148 |
|
| 1,058 |
|
| 1,143 |
| |||||||
Total fixed charges |
| 78,177 |
|
| 61,128 |
|
| 59,747 |
|
| 63,949 |
|
| 63,584 |
|
| 14,920 |
|
| 15,545 |
| |||||||
EARNINGS BEFORE INCOME TAXES AND FIXED CHARGES | $ | 20,364 |
| $ | (46,466 | ) | $ | 47,782 |
| $ | (50,480 | ) | $ | 2,792 |
| $ | 13 |
| $ | (10,711 | ) | |||||||
RATIO OF EARNINGS TO FIXED CHARGES |
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
| |||||||
DEFICIENCY | $ | (57,813 | ) | $ | (107,594 | ) | $ | (11,965 | ) | $ | (114,429 | ) | $ | (60,792 | ) | $ | (14,907 | ) | $ | (26,256 | ) |
1
TERRA INDUSTRIES INC.
RATIO OF EARNINGS TO FIXED CHARGES—PRO FORMA
(Amounts in Thousands, Except Ratio)
Year Ended December 31, 2002 | Three Months Ended March 31, 2003 | |||||||
PRO FORMA EARNINGS BEFORE INCOME TAXES | $ | (62,443 | ) | $ | (24,264 | ) | ||
Minority interest |
| 1,510 |
|
| (1,718 | ) | ||
Equity investee income |
| (982 | ) |
| (82 | ) | ||
Distributed income of equity investees |
| 700 |
|
| 600 |
| ||
Preference security dividend |
| (1,846 | ) |
| (1,153 | ) | ||
| (63,061 | ) |
| (26,617 | ) | |||
PRO FORMA FIXED CHARGES: | ||||||||
Interest expense |
| 54,896 |
|
| 12,620 |
| ||
Preference security dividend |
| 1,846 |
|
| 1,153 |
| ||
Deferred finance amortization |
| 3,963 |
|
| 990 |
| ||
Bond discounts |
| — |
|
| — |
| ||
Estimated interest expense component of operating leases |
| 5,148 |
|
| 1,143 |
| ||
Total fixed charges |
| 65,853 |
|
| 15,906 |
| ||
PRO FORMA EARNINGS BEFORE INCOME TAXES AND FIXED CHARGES | $ | 2,792 |
| $ | (10,711 | ) | ||
PRO FORMA RATIO OF EARNINGS TO FIXED CHARGES |
| — |
|
| — |
| ||
PRO FORMA DEFICIENCY | $ | (63,061 | ) | $ | (26,617 | ) |
2
TERRA CAPITAL, INC.
RATIO OF EARNINGS TO FIXED CHARGES—PRO FORMA
(Amounts in Thousands, Except Ratio)
Year Ended December 31, 2002 | Three Months Ended March 31, 2003 | |||||||
PRO FORMA EARNINGS BEFORE INCOME TAXES | $ | (35,022 | ) | $ | (17,173 | ) | ||
Minority interest |
| 1,510 |
|
| (1,718 | ) | ||
Equity investee income |
| (982 | ) |
| (82 | ) | ||
Distributed income of equity investees |
| 700 |
|
| 600 |
| ||
Preference security dividend |
| (1,846 | ) |
| (1,153 | ) | ||
PRO FORMA FIXED CHARGES: |
| (35,640 | ) |
| (19,526 | ) | ||
Interest expense |
| 54,896 |
|
| 12,620 |
| ||
Preference security dividend |
| 1,846 |
|
| 1,153 |
| ||
Deferred finance amortization |
| 3,963 |
|
| 990 |
| ||
Bond discounts |
| — |
|
| — |
| ||
Estimated interest expense component of operating leases |
| 5,148 |
|
| 1,143 |
| ||
Total fixed charges |
| 65,853 |
|
| 15,906 |
| ||
PRO FORMA EARNINGS BEFORE INCOME TAXES AND FIXED CHARGES | $ | 30,213 |
| $ | (3,620 | ) | ||
PRO FORMA RATIO OF EARNINGS TO FIXED CHARGES |
| — |
|
| — |
| ||
PRO FORMA DEFICIENCY | $ | (35,640 | ) | $ | (19,526 | ) |
3