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
Quarter Ended Combined Quarter
Year Ended December 31, March 31, Year Ended Ended
----------------------------------------- -------------------- December 31, March 31,
1996 1997 1998 1999 2000 2000 2001 2000 2001
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Income before provision
for income tax........... $25,809 $45,906 $50,483 $ 39,461 $ 68,139 $ 43 $(5,930) $ 36,116 $(13,966)
Less: Equity earnings of
unconsolidated
subsidiaries............ 145 -- 3,443 7,528 7,112 1,742 1,042 7,112 1,042
Preferred stock
dividends (1).......... 1,639 6,557 -- -- -- 0 -- -- --
Add: Distributed earnings
of unconsolidated
subsidiaries............ 89 1,440 2,267 12,662 8,389 1,304 1,809 8,389 1,809
Fixed charges........... 32,136 30,654 42,089 56,524 60,448 14,140 14,069 86,989 21,098
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Total earnings before
fixed charges............ $56,250 $71,443 $91,396 $101,119 $129,864 $13,745 $ 8,906 $124,382 $ 7,899
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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 $ 4,455 $ 5,014 $ 18,748 $ 5,014
Interest expense......... 24,123 15,780 31,047 39,368 41,700 9,685 9,055 68,241 16,084
Preferred stock dividends
(1)..................... 1,639 6,557 -- -- -- 0 -- -- --
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Total fixed charges....... $32,136 $30,654 $42,089 $ 56,524 $ 60,448 $14,140 $14,069 $ 86,989 $ 21,098
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Ratio of earnings to fixed
charges.................. 1.75 2.33 2.17 1.79 2.15 0.97(/3/) 0.63(/3/) 1.43(/3/) 0.37(/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 $0.4 million for the quarter ended March 31, 2000,
a deficiency of $5.2 million for the quarter ended March 31, 2001 and a
deficiency of $13.2 million for the pro forma quarter ended March 31, 2001.