EXHIBIT 12.1
OCWEN FINANCIAL CORPORATION AND SUBSIDIARIES
COMPUTATION OF EARNINGS TO FIXED CHARGES
(Dollars in thousands)
2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||
(As Restated)(5) | |||||||||||||||||||
Earnings: | |||||||||||||||||||
Income from continuing operations before income taxes (1) | $ | 350,957 | $ | 257,394 | $ | 123,741 | $ | 37,783 | $ | 96,194 | |||||||||
Add: | |||||||||||||||||||
Interest expensed and capitalized | 395,586 | 223,455 | 132,770 | 85,923 | 62,954 | ||||||||||||||
Interest component of rental expense | 9,102 | 4,883 | 1,854 | 4,101 | 2,100 | ||||||||||||||
Total fixed charges (2) | 404,688 | 228,338 | 134,624 | 90,024 | 65,054 | ||||||||||||||
Earnings available to cover fixed charges | $ | 755,645 | $ | 485,732 | $ | 258,365 | $ | 127,807 | $ | 161,248 | |||||||||
Preferred dividend requirements | $ | 12,020 | $ | 146 | $ | — | $ | — | $ | — | |||||||||
Ratio of pretax income to net income (3) | 1.14 | 1.42 | 1.57 | 1.17 | (27.30 | ) | |||||||||||||
Preferred dividend factor | 13,703 | 207 | — | — | — | ||||||||||||||
Total fixed charges | 404,688 | 228,338 | 134,624 | 90,024 | 65,054 | ||||||||||||||
Combined fixed charges and preferred dividends | $ | 418,391 | $ | 228,545 | $ | 134,624 | $ | 90,024 | $ | 65,054 | |||||||||
Ratio of earnings to combined fixed charges and preferred dividends (4) | 1.81 | 2.13 | 1.92 | 1.42 | 2.48 |
(1) | Excludes income or loss from equity investees but includes any distributions received representing a return on capital. |
(2) | Fixed charges represent total interest expensed and capitalized, including and excluding interest on deposits, amortization of capitalized debt expenses as well as the interest component of rental expense. |
(3) | The ratio of pretax income to net income is determined by dividing income from continuing operations before income taxes by net income from continuing operations. |
(4) | The ratios of earnings to combined fixed charges and preferred dividends were computed by dividing (x) income from continuing operations before income taxes plus fixed charges by (y) combined fixed charges and preferred dividends. |
(5) | See the Explanatory Note to the 10-K/A for the fiscal year ended December 31, 2013. |