Exhibit 12.1
LEINER HEALTH PRODUCTS INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN THOUSANDS)
FOR THE THREE MONTHS ENDED JUNE
30,
FISCAL YEARS ENDED MARCH 31, ----------------------------------
------------------------------------------------------------------
UNAUDITED UNAUDITED
PRO FORMA 1997
1993(1) 1994 1995 1996 1997 1997(2) 1996 1997 PRO FORMA
--------- --------- --------- --------- --------- ----------- --------- ---------- -----------
Net income (loss)......... $ (1,119) $ 3,417 $ 3,813 $ 1,166 $ 7,638 $ (2,626) $ 119 $ (12,183) $ (2,431)
Extraordinary item........ -- -- -- -- 2,756 2,756 -- 1,109 1,109
Income taxes.............. 955 3,573 3,524 4,686 8,028 1,669 92 (7,105) (604)
Fixed charges............. 7,184 8,627 10,863 11,484 9,866 24,980 2,544 2,222 6,238
--------- --------- --------- --------- --------- ----------- --------- ---------- -----------
Earnings................ $ 7,020 $ 15,617 $ 18,200 $ 17,336 $ 28,288 $ 26,779 $ 2,755 $ (15,957) $ 4,312
--------- --------- --------- --------- --------- ----------- --------- ---------- -----------
--------- --------- --------- --------- --------- ----------- --------- ---------- -----------
Fixed charges:
Interest expense.......... $ 5,921 $ 7,144 $ 9,010 $ 9,924 $ 8,281 $ 23,368 $ 2,152 $ 1,800 $ 5,816
Interest portion of rent
expense................. 1,263 1,483 1,853 1,560 1,585 1,612 392 422 422
--------- --------- --------- --------- --------- ----------- --------- ---------- -----------
Total fixed charges..... $ 7,184 $ 8,627 $ 10,863 $ 11,484 $ 9,866 $ 24,980 $ 2,544 $ 2,222 $ 6,238
--------- --------- --------- --------- --------- ----------- --------- ---------- -----------
--------- --------- --------- --------- --------- ----------- --------- ---------- -----------
Ratio of earnings to fixed
charges(3).............. 1.0 1.8 1.7 1.5 2.9 1.1 1.1 (7.2) 0.7
--------- --------- --------- --------- --------- ----------- --------- ---------- -----------
--------- --------- --------- --------- --------- ----------- --------- ---------- -----------
- ------------------------
(1) The computation of ratio of earnings to fixed charges for the fiscal year
ended March 31, 1993 represents the results of operations of LHP, the
results of operations for XCEL from the date of its acquisition, and
purchase accounting for the acquisitions of LHP and XCEL during that fiscal
year. See "The Company."
(2) On January 30, 1997, the Company purchased Vita Health. This column gives
effect to the acquisition of Vita Health, as well as the Recapitalization
and related transactions. See "Unaudited Pro Forma Financial Information."
The Vita Health acquisition was accounted for under the purchase method of
accounting. Consequently, the results of operations of Vita Health were
included in the consolidated financial results of the Company for the two
months ended March 31, 1997. The pro forma column includes the operating
results of Vita Health for the additional ten months ended January 30, 1997.
(3) In calculating the ratio of earnings to fixed charges, earnings consist of
income before taxes plus fixed charges. Fixed charges consist of interest
expense and amortization of deferred financing fees, whether capitalized or
expensed, plus one-third of rental expense under operating leases (the
portion that has been deemed by the Company to be representative of an
interest factor).