EXHIBIT 12.1
RATIO OF EARNINGS TO FIXED CHARGES
Year Ended December 31, | ||||||||||
2008 | 2007 | 2006 | 2005 | 2004 | ||||||
Ratio of earnings to fixed charges (1) | N/A | N/A | N/A | N/A | N/A |
(1) | Our earnings were insufficient to cover fixed charges by $184.3 million, $138.8 million, $59.4 million, $85.2 million, $24.8 million and $2.5 million for the years ended December 31, 2008, 2007, 2006, 2005 and 2004, respectively. |
JAZZ PHARMACEUTICALS, INC.
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
(In thousands)
Year Ended December 31, | ||||||||||||||||||||
2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||
EARNINGS: | ||||||||||||||||||||
Loss before income taxes | (184,339 | ) | (138,826 | ) | (59,391 | ) | (85,156 | ) | (24,804 | ) | ||||||||||
Plus: fixed charges (see below) | 21,037 | 14,150 | 14,458 | 7,361 | 109 | |||||||||||||||
Less: capitalized interest | — | — | — | — | — | |||||||||||||||
Total loss to cover fixed charges | (163,302 | ) | (124,676 | ) | (44,933 | ) | (77,795 | ) | (24,695 | ) | ||||||||||
FIXED CHARGES: | ||||||||||||||||||||
Interest expense | 17,535 | 12,256 | 12,757 | 6,422 | — | |||||||||||||||
Amortization of capitalized expenses and accretion of debt discount related to indebtedness | 2,207 | 1,391 | 1,372 | 707 | — | |||||||||||||||
Estimated interest portion of rental expense | 1,295 | 503 | 329 | 232 | 109 | |||||||||||||||
Total Fixed Charges (1) | 21,037 | 14,150 | 14,458 | 7,361 | 109 | |||||||||||||||
DEFICIENCY OF EARNINGS TO COVER FIXED CHARGES | $ | (184,339 | ) | $ | (138,826 | ) | $ | (59,391 | ) | $ | (85,156 | ) | $ | (24,804 | ) | |||||
(1) | For purposes of computing the ratio of earnings to fixed charges, fixed charges consist of interest expense on long and short term debt, amortization of deferred financing costs, accretion of a debt discount, interest imputed related to a government settlement obligation, interest related to a development financing obligation and a portion of rental expense deemed to be representative of interest. |