Exhibit 12.1
OCWEN FINANCIAL CORPORATION AND SUBSIDIARIES
COMPUTATION OF EARNINGS TO FIXED CHARGES
(DOLLARS IN THOUSANDS)
2001 2000 1999 1998 1997
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Earnings:
(Loss) income from continuing operations before
income taxes and extraordinary gain (1) ................... $ (45,557) $ (8,564) $ 23,973 $ (32,805) $ 99,538
Add:
Interest expensed and capitalized, except interest on
deposits, and amortization of capitalized debt expenses ... 42,738 84,897 72,765 84,596 44,137
Interest on deposits ........................................ 59,967 98,224 98,370 116,584 122,070
Interest component of rental expense ........................ 1,176 1,124 2,032 2,135 958
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Total fixed charges (2) ..................................... 103,881 184,245 173,167 203,315 167,165
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Earnings for computation purposes ............................. $ 58,324 $ 175,681 $ 197,140 $ 170,510 $ 266,703
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Ratio of earnings to fixed charges:
Including interest on deposits (3) .......................... (4) (4) 1.13 (4) 1.58
Excluding interest on deposits (3) .......................... (5) (5) 1.33 (5) 3.39
(1) Earnings represents pre-tax income from continuing operations before
extraordinary gain, adjusted for losses and undistributed income of
equity investees.
(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 ratios of earnings to fixed charges were computed by dividing (x)
income from continuing operations before income taxes and extraordinary
gains, adjusted for losses and undistributed income of equity investees
plus fixed charges by (y) fixed charges.
(4) Due to our losses in 2001, 2000 and 1998, the ratio of earnings to
fixed charges was less than 1:1. We would have had to have generated
additional earnings of $46,342, $9,305 and $34,117, respectively, to
achieve a coverage of 1:1.
(5) Due to our loss in 2001, 2000 and 1998, the ratio of earnings to fixed
charges was less than 1:1. We would have had to have generated
additional earnings of $45,557, $8,564 and $32,805, respectively, to
achieve a coverage of 1:1.