Exhibit 12.1
SALIX PHARMACEUTICALS, LTD.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(in thousands)
| Quarter Ended March 31, | Year Ended December 31, | |||||||||||||||||||||||||||
| 2014 | 2013 | 2013 | 2012 | 2011 | 2010 | 2009 | ||||||||||||||||||||||
EARNINGS (LOSS) | ||||||||||||||||||||||||||||
Net income (loss) before provision for income tax (1) | $ | (80,240 | ) | $ | 33,959 | $ | 212,065 | $ | 111,828 | $ | 86,101 | $ | (24,203 | ) | $ | (45,631 | ) | |||||||||||
Fixed charges (1) | 43,078 | 15,628 | 62,891 | 56,667 | 32,879 | 21,141 | 7,275 | |||||||||||||||||||||
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Net Income (loss) before provision for income tax plus fixed charges | $ | (37,162 | ) | $ | 49,587 | $ | 274,956 | $ | 168,495 | $ | 118,980 | $ | (3,062 | ) | $ | (38,356 | ) | |||||||||||
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FIXED CHARGES | ||||||||||||||||||||||||||||
Interest expense (1) | $ | 29,275 | $ | 5,131 | $ | 20,267 | $ | 19,766 | $ | 12,760 | $ | 8,857 | $ | 3,594 | ||||||||||||||
Amortization of debt issuance costs and debt discount | 13,185 | 10,198 | 41,383 | 35,752 | 19,361 | 11,795 | 3,151 | |||||||||||||||||||||
Estimate of interest within rental expense | 618 | 299 | 1,241 | 1,149 | 758 | 489 | 530 | |||||||||||||||||||||
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Fixed Charges | $ | 43,078 | $ | 15,628 | $ | 62,891 | $ | 56,667 | $ | 32,879 | $ | 21,141 | $ | 7,275 | ||||||||||||||
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RATIO OF EARNINGS TO FIXED CHARGES | — | 3.17 | 4.37 | 2.97 | 3.62 | — | — | |||||||||||||||||||||
COVERAGE DEFICIENCY (2) | $ | (80,240 | ) | $ | — | $ | — | $ | — | $ | — | $ | (24,203 | ) | $ | (45,631 | ) | |||||||||||
| (1) | For the quarter ended March 31, 2014, income before taxes and fixed charges include $ 0.5 million of interest expense related to uncertain tax positions. |
| (2) | Earnings were inadequate to cover fixed charges for the years ended December 31, 2010 and 2009 and the quarter ended March 31, 2014. As a result, a coverage deficiency is provided for those periods presented in which earnings were inadequate to cover fixed charges. |
