EXHIBIT 12.1
Cohen & Company Inc.
Statement Re: Computation of Ratios
The following table sets forth our consolidated ratio of earnings to fixed charges for the periods indicated:
| For the year ended December 31, | ||||||||||||||||||||
| 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||
Income (loss) before income tax expense (benefit) | $ | (11,794 | ) | $ | (6,136 | ) | $ | (18,823 | ) | $ | (9,500 | ) | $ | 63,954 | ||||||
Less: Net income (loss) attributable to non-controlling interests | (98 | ) | (1,259 | ) | 3,067 | 752 | 71 | |||||||||||||
Pre-tax income attributable to Cohen & Company Inc. | (11,696 | ) | (4,877 | ) | (21,890 | ) | (10,252 | ) | 63,883 | |||||||||||
Adjustments: | ||||||||||||||||||||
(Income) /loss from equity method affiliates | 3,455 | (262 | ) | (11,719 | ) | (3,503 | ) | (16 | ) | |||||||||||
Distributed income from equity method affiliates | 925 | 500 | — | 96 | — | |||||||||||||||
Fixed charges | 5,042 | 8,614 | 11,097 | 3,698 | 16 | |||||||||||||||
Earnings before taxes and fixed charges as adjusted | $ | (2,274 | ) | $ | 3,975 | $ | (22,512 | ) | $ | (9,961 | ) | $ | 63,883 | |||||||
Fixed charges: | ||||||||||||||||||||
Interest expense on all indebtedness (a) | $ | 4,980 | $ | 8,546 | $ | 11,019 | $ | 3,647 | $ | — | ||||||||||
Rental expense deemed to be interest (b) | 62 | 68 | 78 | 51 | 16 | |||||||||||||||
Total fixed charges | $ | 5,042 | $ | 8,614 | $ | 11,097 | $ | 3,698 | $ | 16 | ||||||||||
Ratio of earnings to fixed charges | (c | ) | (c | ) | (c | ) | (c | ) | N/M | |||||||||||
These ratios are based on the historical financial statements of Cohen Brothers, LLC, which became our financial statements as a result of the reverse merger in December 2009 of Cohen Brothers LLC into a subsidiary of ours.
| (a) | Interest expense includes amortization expense for debt issuance costs and discount on debt. Interest expense does not include interest related to uncertain tax positions which is included as part of income tax expense in the consolidated statements of operations. |
| (b) | Calculated as one-third of operating lease rental expense deemed to be representative of the interest factor inherent in rents. |
| (c) | The earnings were inadequate to cover total fixed charges. For the years ended December 31, 2009, 2008, 2007, and 2006, we would have needed additional pre-tax income attributable to Cohen & Company Inc. of $7,316, $4,639, $33,609, and $13,659, respectively, to achieve coverage of 1:1 in these periods. |
