Exhibit 12.1
Cowen Group, Inc.
Calculation of Ratio of Earnings to Total Fixed Charges
Year Ended December 31, | |||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||
Earnings | (dollars in thousands) | ||||||||||||||||||
Pre-tax income from continuing operations | $ | 6,962 | $ | (31,487 | ) | $ | 11,479 | $ | 57,836 | $ | 18,297 | ||||||||
Less income or plus loss from equity investees | (21,290 | ) | (14,431 | ) | (3,419 | ) | (49,053 | ) | (16,100 | ) | |||||||||
Plus: fixed charges | 34,582 | 26,848 | 26,475 | 17,150 | 6,248 | ||||||||||||||
Plus: amortization of capitalized interest | — | — | — | — | — | ||||||||||||||
Plus: distributed income of equity investees | 26,218 | 29,270 | 45,860 | 20,292 | 19,475 | ||||||||||||||
Plus: share of pre-tax losses of equity investees for which charges arising from guarantees are included in fixed charges | — | — | — | — | — | ||||||||||||||
Less: interest capitalized and preference security dividend requirements of consolidated subsidiaries | — | — | — | — | — | ||||||||||||||
Less: non-controlling interest in the pre-tax income of subsidiaries that have not incurred fixed charges | (23,791 | ) | (6,882 | ) | (15,246 | ) | (15,564 | ) | (13,193 | ) | |||||||||
Total earnings | 22,681 | 3,318 | 65,149 | 30,661 | 14,727 | ||||||||||||||
Amortization of discount | 7,435 | 6,885 | 6,302 | 4,685 | — | ||||||||||||||
Interest expense on debt | 10,448 | 9,703 | 9,703 | 4,772 | — | ||||||||||||||
Other interest expense | 16,699 | 10,260 | 10,470 | 7,693 | 6,248 | ||||||||||||||
Fixed charges | $ | 34,582 | $ | 26,848 | $ | 26,475 | $ | 17,150 | $ | 6,248 | |||||||||
Ratio of earnings to fixed charges | 0.66 | 0.12 | 2.46 | 1.79 | 2.36 | ||||||||||||||
Preferred dividends | $ | 6,792 | $ | 6,792 | $ | 4,075 | $ | — | $ | — | |||||||||
Ratio of earnings to preferred dividends | 3.34 | 0.49 | 15.99 | — | — | ||||||||||||||
Fixed charges and preferred dividends | $ | 41,374 | $ | 33,640 | $ | 30,550 | $ | — | $ | — | |||||||||
Ratio of earnings to fixed charges and preferred dividends | 0.55 | 0.10 | 2.13 | — | — |
Earnings were insufficient to cover fixed charges at a 1:1 ratio by $11.9 million and $23.5 million for the years ended December 31, 2017 and 2016, respectively.