EX-12 4 opy10-kexx12.htm EXHIBIT 12 OPY 10-K Ex-12


EXHIBIT 12
Oppenheimer Holdings Inc.
Computation of Ratio of Earnings to Fixed Charges (1) 
 
Expressed in thousands of dollars.
2010
 
2011
 
2012
 
2013
 
2014
Profit (Loss) Before Income Taxes
$
67,991

 
$
17,848

 
$
(527
)
 
$
43,909

 
$
25,736

Add Fixed Charges:
 
 
 
 
 
 
 
 
 
Interest Expense (2)
25,750

 
38,026

 
35,086

 
26,142

 
17,801

Amortization of Debt Issuance Costs
643

 
986

 
639

 
639

 
1,118

Appropriate Portion of Rentals Representative of the Interest Factor (3)
16,793

 
16,994

 
17,075

 
15,454

 
15,208

Total Fixed Charges
$
43,186

 
$
56,006

 
$
52,800

 
$
42,235

 
$
34,127

Earnings
$
111,177

 
$
73,854

 
$
52,273

 
$
86,144

 
$
59,863

Ratio of Earnings to Fixed Charges (4)
2.6

 
1.3

 
—

 
2.0

 
1.8

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 to achieve a coverage of 1:1.