EX-12 2 opy10-kexx1212312016.htm EXHIBIT 12 Exhibit


EXHIBIT 12
Oppenheimer Holdings Inc.
Computation of Ratio of Earnings to Fixed Charges (1) 
(Expressed in thousands)
2012
 
2013
 
2014
 
2015
 
2016
Income (Loss) Before Income Taxes
$
(527
)
 
$
43,909

 
$
25,736

 
$
6,711

 
$
(21,892
)
Add Fixed Charges:
 
 
 
 
 
 
 
 
 
Interest Expense (2)
35,086

 
26,142

 
17,801

 
17,323

 
19,437

Amortization of Debt Issuance Costs
639

 
639

 
1,118

 
485

 
484

Appropriate Portion of Rentals Representative of the Interest Factor (3)
17,075

 
15,454

 
15,208

 
15,308

 
14,807

Total Fixed Charges
$
52,800

 
$
42,235

 
$
34,127

 
$
33,116

 
$
34,728

Earnings
$
52,273

 
$
86,144

 
$
59,863

 
$
39,827

 
$
12,836

Ratio of Earnings to Fixed Charges (4)
—

 
2.0

 
1.8

 
1.2

 
—

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 losses in the year ended December 31, 2012 and 2016, the ratio coverage was less than 1:1 in these periods. The Company would have needed to generate additional earnings of $527,000 in 2012 and $21.9 million in 2016 to achieve a coverage of 1:1.