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,
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| | | 1998
| | | 1999
| | | 2000
| | | 2001
| | | 2002
| | | 2002
| | | 2003
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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 | ) |
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| | | | (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 | |
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Total fixed charges | | | 78,177 | | | | 61,128 | | | | 59,747 | | | | 63,949 | | | | 63,584 | | | | 14,920 | | | | 15,545 | |
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EARNINGS BEFORE INCOME TAXES AND FIXED CHARGES | | $ | 20,364 | | | $ | (46,466 | ) | | $ | 47,782 | | | $ | (50,480 | ) | | $ | 2,792 | | | $ | 13 | | | $ | (10,711 | ) |
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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
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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 | ) |
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| | | | (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 | |
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Total fixed charges | | | 65,853 | | | | 15,906 | |
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PRO FORMA EARNINGS BEFORE INCOME TAXES AND FIXED CHARGES | | $ | 2,792 | | | $ | (10,711 | ) |
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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
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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 | ) |
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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 | |
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Total fixed charges | | | 65,853 | | | | 15,906 | |
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PRO FORMA EARNINGS BEFORE INCOME TAXES AND FIXED CHARGES | | $ | 30,213 | | | $ | (3,620 | ) |
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PRO FORMA RATIO OF EARNINGS TO FIXED CHARGES | | | — | | | | — | |
PRO FORMA DEFICIENCY | | $ | (35,640 | ) | | $ | (19,526 | ) |
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