EX-12.1 8 dex121.htm STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Statement re: Computation of Ratio of Earnings to Fixed Charges

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.