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 ------- ------- ------- -------- -------- ------- ------- ------------ --------- 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 ------- ------- ------- -------- -------- ------- -------- -------- -------- Total earnings before fixed charges............ $56,250 $71,443 $91,396 $101,119 $129,864 $42,891 $ 17,658 $123,559 $ 17,143 ======= ======= ======= ======== ======== ======= ======== ======== ======== 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 ------- ------- ------- -------- -------- ------- -------- -------- -------- Total fixed charges....... $32,136 $30,654 $42,089 $ 56,524 $ 60,448 $29,787 $ 28,782 $104,174 $ 50,904 ======= ======= ======= ======== ======== ======= ======== ======== ======== 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/) ======= ======= ======= ======== ======== ======= ======== ======== ========
-------- (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.