EXHIBIT 12.1
CBRE HOLDING, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS
(Dollars in thousands)
| CB Richard Ellis Services |
Derived Services | Derived Services | Derived Services | Derived Services | Derived Services | Derived Services | ||||||||||||||||||||||||||
| Twelve Months Ended December 31, 1998 |
Twelve Months Ended December 31, 1999 |
Twelve Months Ended December 31, 2000 |
Period from July 20, 2001 |
February 20, (inception) |
Twelve Months Ended December 31, 2002 |
Six Months June 30, 2002 |
Six Months June 30, 2003 |
Pro Forma Twelve Months Ended |
Pro Forma Six Ended June 30, 2003 |
|||||||||||||||||||||||
| Income (loss) before provision for income taxes |
$ | 50,483 | $ | 39,461 | $ | 68,139 | $ | (32,910 | ) | $ | 43,006 | $ | 60,434 | $ | 8,424 | $ | 12,686 | $ | 58,186 | $ | (148 | ) | ||||||||||
| Less: Equity income from unconsolidated subsidiaries. |
3,443 | 7,528 | 7,112 | 2,854 | 1,661 | 8,968 | 3,221 | 6,993 | 8,968 | 6,993 | ||||||||||||||||||||||
| Add: Distributed earnings of unconsolidated subsidiaries |
2,267 | 12,662 | 8,389 | 2,844 | 2,408 | 10,417 | 3,900 | 5,215 | 10,417 | 5,215 | ||||||||||||||||||||||
| Fixed charges |
42,089 | 56,524 | 59,985 | 31,063 | 30,419 | 71,675 | 36,565 | 39,260 | 111,278 | 56,236 | ||||||||||||||||||||||
| Total earnings before fixed charges |
$ | 91,396 | $ | 101,119 | $ | 129,401 | $ | (1,857 | ) | $ | 74,172 | $ | 133,558 | $ | 45,668 | $ | 50,168 | $ | 170,913 | $ | 54,310 | |||||||||||
| Fixed charges: |
||||||||||||||||||||||||||||||||
| Portion of rent expense representative of the interest factor (1) |
$ | 11,042 | $ | 17,156 | $ | 18,285 | $ | 10,760 | $ | 8,901 | $ | 22,518 | $ | 11,259 | $ | 13,849 | $ | 32,284 | $ | 19,001 | ||||||||||||
| Interest expense |
31,047 | 39,368 | 41,700 | 20,303 | 21,518 | 49,157 | 25,306 | 25,411 | 78,994 | 37,235 | ||||||||||||||||||||||
| Total fixed charges |
$ | 42,089 | $ | 56,524 | $ | 59,985 | $ | 31,063 | $ | 30,419 | $ | 71,675 | $ | 36,565 | $ | 39,260 | $ | 111,278 | $ | 56,236 | ||||||||||||
| Ratio of earnings to fixed charges |
2.17 | 1.79 | 2.16 | n/a | (2) | 2.44 | 1.86 | 1.25 | 1.28 | 1.54 | 0.97 | (3) | ||||||||||||||||||||
| (1) | Represents one-third of operating lease costs, which approximates the portion that relates to the interest portion. |
| (2) | The ratio of earnings to fixed charges was negative for the period from January 1, 2001 to July 20, 2001. Additional earnings of $32.9 million would be needed to have a one-to-one ratio. |
| (3) | Additional earnings of $1.9 million would be needed to have a one-to-one ratio of earnings to fixed charges. |