EX-12 2 d304670dex12.htm EX-12 EX-12

EXHIBIT 12

Oppenheimer Holdings Inc.

Computation of Ratio of Earnings to Fixed Charges(1)

 

September 30, September 30, September 30, September 30, September 30,

Expressed in thousands of dollars

      2007        2008      2009        2010        2011  

Profit (Loss) Before Income Taxes

      $ 127,394         $ (36,566 )     $ 37,067         $ 67,991         $ 17,848   

Add Fixed Charges:

                       

Interest Expense(2)

        56,643           39,137         21,429           25,750           38,026   

Amortization of Debt Issuance Costs

        1,218           1,227         1,164           643           986   

Appropriate Portion of Rentals Representative of the Interest Factor(3)

        11,036           15,687         16,853           16,793           16,994   

Total Fixed Charges

      $ 68,897         $ 56,051       $ 39,446         $ 43,186         $ 56,006   

Earnings

      $ 196,291         $ 19,485       $ 76,513         $ 111,177         $ 73,854   

Ratio of Earnings to Fixed Charges(4)

        2.8           —           1.9           2.6           1.3   

Notes:

 

(1) The ratio of earnings to fixed charges is computed by dividing earnings, which is the sum of profit (loss) before income taxes and fixed charges, by fixed charges. Fixed charges represent interest expense, amortization of debt issuance costs, and an appropriate portion of rentals representative of the interest factor.

 

(2) In addition to interest expense on long-term debt, also includes interest expenses on short-term borrowings including bank call loans, securities lending, and repurchase agreements which generally have a corresponding asset that generates interest income that substantially offsets or exceeds the aforementioned interest expense.

 

(3) The percent of rent included in the computation is a reasonable approximation of the interest factor.

 

(4) Due to the Company’s pre-tax loss in the year ended December 31, 2008 the ratio coverage was less than 1:1 in this period. The Company would have needed to generate additional earnings of $36 million to achieve a coverage of 1:1.