Exhibit 12.1
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Our ratio of earnings to fixed charges in accordance with Israeli GAAP for the periods presented are as follows:
2005 | 2004 | 2003 | 2002 | 2001 | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dollars in thousands | |||||||||||||||||
Losses: | |||||||||||||||||
Losses before income taxes | (203,082 | ) | (137,768 | ) | (114,261 | ) | (51,402 | ) | (38,522 | ) | |||||||
Amortization of capitalized interest (a) | 4,206 | 3,557 | 954 | - | - | ||||||||||||
Interest capitalized (d) | (2,793 | ) | - | (14,042 | ) | (12,300 | ) | (10,994 | ) | ||||||||
(201,669 | ) | (134,211 | ) | (127,349 | ) | (63,702 | ) | (49,516 | ) | ||||||||
Fixed Charges : | |||||||||||||||||
Amortization of expenses related | |||||||||||||||||
to indebtedness (b) | 523 | 524 | 271 | - | - | ||||||||||||
Interest expenses (c) | 32,362 | 26,582 | 7,891 | 708 | 1,568 | ||||||||||||
Interest capitalized (d) | 2,793 | - | 14,042 | 12,300 | 10,994 | ||||||||||||
Total Fixed Charges | 35,678 | 27,106 | 22,204 | 13,008 | 12,562 | ||||||||||||
Losses as adjusted | (165,991 | ) | (107,105 | ) | (105,145 | ) | (50,694 | ) | (36,954 | ) | |||||||
Ratio of earnings to fixed charges | - | (1) | - | (2) | - | (3) | - | (4) | - | (5) |
(1) Earnings as adjusted were inadequate to cover fixed charges by $201.7 million in 2005.
(2) Earnings as adjusted were inadequate to cover fixed charges by $134.2 million in 2004.
(3) Earnings as adjusted were inadequate to cover fixed charges by $127.3 million in 2003.
(4) Earnings as adjusted were inadequate to cover fixed charges by $63.7 million in 2002.
(5) Earnings as adjusted were inadequate to cover fixed charges by $49.5 million in 2001.
(a) | Includes amortization of deferred financing charges in connection with obtaining long-term bank loans which are comprised mainly of stock-based compensation related to warrants issued to banks. |
(b) | Includes amortization of convertible debentures discount and deferred issuance expenses. |
(c) | Includes, mainly, the effective interest of long-term loans based on their terms and the effect of hedge agreements with knock-out and knock-in features and interest expenses in relation to convertible debentures. |
(d) | Includes, mainly, the effective capitalized interest of long-term loans based on their terms and the effect of hedge agreements with a knock-out feature, capitalized interest in relation to convertible debentures and deferred financing charges in connection with obtaining long-term bank loans which are comprised mainly of stock-based compensation related to warrants issued to banks. |