EX-12 3 d666451dex12.htm EX-12 EX-12

EXHIBIT 12

Oppenheimer Holdings Inc.

Computation of Ratio of Earnings to Fixed Charges (1)

 

Expressed in thousands of dollars.

    2009      2010      2011      2012     2013  

Profit (Loss) Before Income Taxes

    $ 37,067       $ 67,991       $ 17,848       $ (527 )    $ 43,909   

Add Fixed Charges:

              

Interest Expense (2)

      21,429         25,750         38,026         35,086        26,142   

Amortization of Debt Issuance Costs

      1,164         643         986         639        639   

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

      16,853         16,793         16,994         17,075        15,454   
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total Fixed Charges

    $ 39,446       $ 43,186       $ 56,006       $ 52,800      $ 42,235   
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Earnings

    $ 76,513       $ 111,177       $ 73,854       $ 52,273      $ 86,144   
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Ratio of Earnings to Fixed Charges (4)

      1.9         2.6         1.3         —          2.0   
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

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, 2012, the ratio coverage was less than 1:1 in this period. The Company would have needed to generate additional earnings of $527,000 in 2012, respectively to achieve a coverage of 1:1.