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 ------- ------- ------- -------- -------- ------- ------- ------------ --------- 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 ------- ------- ------- -------- -------- ------- ------- -------- -------- Total earnings before fixed charges............ $56,250 $71,443 $91,396 $101,119 $129,864 $13,745 $ 8,906 $124,382 $ 7,899 ======= ======= ======= ======== ======== ======= ======= ======== ======== 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 -- -- -- ------- ------- ------- -------- -------- ------- ------- -------- -------- Total fixed charges....... $32,136 $30,654 $42,089 $ 56,524 $ 60,448 $14,140 $14,069 $ 86,989 $ 21,098 ======= ======= ======= ======== ======== ======= ======= ======== ======== 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/) ======= ======= ======= ======== ======== ======= ======= ======== ========
- -------- (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.