EX-12 6 ex_12.htm CALCULATION OF RATIOS ex_12.htm
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
 
2004
 
2005
 
2006
 
2007
 
2008
 
9/30/2008
 
9/30/2009
Income from continuing operations before provisions for income taxes and equity in earnings of affiliate
 
$
 
77
 
$
 
5,007
 
$
 
15,848
 
$
 
48,197
 
$
 
54,399
 
 
$
 
52,108
 
$
 
34,961
Add:
                             
Fixed charges
 
11,955
 
15,431
 
15,971
 
15,674
 
12,042
   
9,206
 
6,454
Share of distributed income of 50% owned affiliate
 
250
 
488
 
875
 
765
 
735
   
555
 
560
Adjusted Earnings
$
12,282
$
20,926
$
32,694
$
64,636
$
67,176
 
$
61,869
$
41,975
                               
Fixed Charges:
                             
Interest expense (1)
$
7,393
$
11,245
$
12,028
$
11,723
$
8,510
 
$
6,572
$
4,609
Estimate of interest in rental expense
 
4,562
 
4,186
 
3,943
 
3,951
 
3,532
   
2,634
 
1,845
Fixed Charges
 
11,955
 
15,431
 
15,971
 
15,674
 
12,042
   
9,206
 
6,454
                               
Preferred stock dividends
 
2,322
 
2,337
 
2,783
 
5,912
 
463
   
490
 
506
Combined fixed charges and preferred stock dividends
$
14,277
$
17,768
$
18,754
$
21,586
$
12,505
 
$
9,696
$
6,960
                               
Ratio of earnings to fixed charges
 
1.0
 
1.4
 
2.0
 
4.1
 
5.6
   
6.7
 
6.5
                               
Ratio of earnings to combined fixed charges and preferred stock dividends (2)
 
-
 
1.2
 
1.7
 
3.0
 
5.4
   
6.4
 
6.0
                               
Deficiency (2)
$
1,995
                         

(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.

(2)  
Earnings were insufficient to cover fixed charges and preferred dividends by $1,995,000 in the year ended December 31, 2004.