EX-12.1 2 dex121.htm RATIO OF EARNINGS TO FIXED CHARGES Ratio of Earnings to Fixed Charges

EXHIBIT 12.1

JAZZ PHARMACEUTICALS, INC.

RATIO OF EARNINGS TO FIXED CHARGES

 

     Year Ended December 31,
     2009    2008    2007    2006    2005

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 $6.8 million, $184.3 million, $138.8 million, $59.4 million and $85.2 million for the years ended December 31, 2009, 2008, 2007, 2006 and 2005, respectively.

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

(In thousands)

 

     Year Ended December 31,  
     2009     2008     2007     2006     2005  

EARNINGS:

          

Loss before income taxes

   $ (6,836   $ (184,339   $ (138,826   $ (59,391   $ (85,156

Plus: fixed charges (see below)

     23,481        21,037        14,150        14,458        7,361   
                                        

Total income (loss) to cover fixed charges

     16,645        (163,302     (124,676     (44,933     (77,795

FIXED CHARGES:

          

Interest expense

     20,249        17,535        12,256        12,757        6,422   

Amortization of capitalized expenses and accretion of debt discount related to indebtedness

     2,547        2,207        1,391        1,372        707   

Estimated interest portion of rental expense

     685        1,295        503        329        232   
                                        

Total fixed charges(1)

     23,481        21,037        14,150        14,458        7,361   
                                        

DEFICIENCY OF EARNINGS TO COVER FIXED CHARGES

   $ (6,836   $ (184,339   $ (138,826   $ (59,391   $ (85,156
                                        

 

(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.