EXHIBIT 12.1

 

CB Richard Ellis Services

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
January 1,
2001
through
July 20,
2001
     February 20,
2001
(inception)
through
December 31,
2001
    Twelve
Months
Ended
December 31,
2002
    Nine Months
Ended
September 30,
2002
    Nine Months
Ended
September 30,
2003
     Pro Forma
Twelve
Months
Ended
December 31,
2002
      Pro Forma
Nine Months
Ended
September 30,
2003
  

Income (loss) before provision for income taxes

    $ 50,483    $ 39,461    $ 68,139    $ (32,910 )   $ 43,006    $ 60,434    $ 18,868    $ (40,079 )   $ (1,059 )    $ (21,462 )

Less: Equity income from unconsolidated subsidiaries

      3,443      7,528      7,112      2,854       1,661      8,968      5,880      9,795       8,968        9,795  

Add: Distributed earnings of unconsolidated subsidiaries

      2,267      12,662      8,389      2,844       2,408      10,417      8,474      8,051       10,417        8,051  

Fixed charges

      42,089      56,524      59,985      31,063       30,419      71,675      54,765      71,492       111,278        89,542  
    
  
  
  
 
  
  
  
 
  

Total earnings before fixed charges

    $ 91,396    $ 101,119    $ 129,401    $ (1,857 )   $ 74,172    $ 133,558    $ 76,227    $ 29,668     $ 111,668      $ 66,396  
    
  
  
  
 
  
  
  
 
  

Fixed charges:

                                                                            

Portion of rent expense representative of the interest factor (1)

    $ 11,042    $ 17,156    $ 18,285    $ 10,760     $ 8,901    $ 22,518    $ 16,889    $ 20,773     $ 32,284      $ 56,529  

Interest expense

      31,047      39,368      41,700      20,303       21,518      49,157      37,876      50,719       78,994        33,013  
    
  
  
  
 
  
  
  
 
  

Total fixed charges

    $ 42,089    $ 56,524    $ 59,985    $ 31,063     $ 30,419    $ 71,675    $ 54,765    $ 71,492     $ 111,278      $ 89,542  
    
  
  
  
 
  
  
  
 
  

Ratio of earnings to fixed charges

      2.17      1.79      2.16      n/a (2)     2.44      1.86      1.39      0.54 (3)     1.00        0.74 (4)
    
  
  
  
 
  
  
  
 
  

 

(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 $32.9 million would be needed to have a one-to-one ratio of earnings to fixed charges.

 

(4) Additional earnings of $23.2 million would be needed to have a one-to-one ratio of earnings to fixed charges.