EXHIBIT 12.1
CB RICHARD ELLIS SERVICES, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS
(Dollars in thousands)
Pro Forma
Combined
Pro Forma for the
Six Months Combined Six Months
Year Ended December 31, Ended June 30, Year Ended Ended
----------------------------------------- ----------------- December 31, June 30,
1996 1997 1998 1999 2000 2000 2001 2000 2001
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Income (loss) before
provision (benefit) for
income tax............... $25,809 $45,906 $50,483 $ 39,461 $ 68,139 $11,695 $(11,141) $ 44,124 $(20,770)
Less: Equity earnings of
unconsolidated
subsidiaries........... 145 -- 3,443 7,528 7,112 2,320 2,785 7,112 2,785
Preferred stock
dividends (1).......... 1,639 6,557 -- -- -- -- -- 26,016 13,008
Add: Distributed earnings
of unconsolidated
subsidiaries............ 89 1,440 2,267 12,662 8,389 3,729 2,802 8,389 2,802
Fixed charges........... 32,136 30,654 42,089 56,524 60,448 29,787 28,782 104,174 50,904
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Total earnings before
fixed charges............ $56,250 $71,443 $91,396 $101,119 $129,864 $42,891 $ 17,658 $123,559 $ 17,143
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Fixed Charges:
Portion of rent expense
representative of the
interest factor (2)..... $ 6,374 $ 8,317 $11,042 $ 17,156 $ 18,748 $ 9,117 $ 10,369 $ 18,748 $ 10,369
Interest expense......... 24,123 15,780 31,047 39,368 41,700 20,670 18,413 59,410 27,527
Preferred stock dividends
(1)..................... 1,639 6,557 -- -- -- -- -- 26,016 13,008
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Total fixed charges....... $32,136 $30,654 $42,089 $ 56,524 $ 60,448 $29,787 $ 28,782 $104,174 $ 50,904
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Ratio of earnings to fixed
charges.................. 1.75 2.33 2.17 1.79 2.15 1.44 0.61(/3/) 1.19 0.34(/3/)
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(1) Preferred stock dividend requirements have been reflected at their pre-tax
amounts. The 1998 amount does not reflect the deemed dividend associated
with the Company's repurchase of convertible preferred stock for $32.3
million.
(2) Represents one-third of operating lease costs which approximates the
portion that relates to the interest portion.
(3) Includes a deficiency of $11.1 million for the six months ended June 30,
2001 and a deficiency of $33.8 million for the pro forma six months ended
June 30, 2001.