EX-12.1 4 rexv12x1.htm EX-12.1 exv12x1
 
Exhibit 12.1
 
STIFEL FINANCIAL CORP.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
 
 
  
Year Ended December 31,
    
Nine Months Ended September 30,
  
(dollars in thousands)
 
2006 (2)
  
2007 (2)
  
2008 (2)
  
2009
  
2010 (3)
    
2010
    
2011 (5)
  
Earnings:
                                  
Income/(loss) before income taxes
    $ 26,369    $ 53,846    $ 91,769    $ 120,414    $ (229 )    $  (67,046 )    $ 93,582  
Fixed charges
     24,434     39,740     29,070     26,433     30,756       21,578       32,997  
Total Earnings
    $ 50,803    $ 93,586    $ 120,839    $ 146,847    $ 30,527      $ (45,468 )    $ 126,579  
                                                 
Fixed charges:
                                                
Interest expense
    $ 19,581    $ 30,025    $ 18,510    $ 12,234    $ 13,211      $ 8,388      $ 18,931  
Interest portion of rent expense
     4,853     9,715     10,560         14,199     17,545       13,190       14,066  
Total fixed charges
    $ 24,434    $ 39,740    $  29,070    $ 26,433    $ 30,756      $ 21,578      $ 32,997  
                                                 
Ratio of earnings to fixed charges (1)
     2.08     2.35     4.16     5.56     0.99       — (4)     3.84  
                                                 
 
(1)  The ratio of earnings to fixed charges is computed by dividing (i) earnings from continuing operations before income taxes plus fixed charges by (ii) fixed charges. Fixed charges consist of interest expense plus the interest component of lease rental expense (deemed to be one-third of operating lease rental expense).
(2) For the years ended December 31, 2006, 2007 and 2008, we recorded merger-related after-tax expenses of $24.2 million, $34.6 million and $15.9 million, respectively.
(3) For the year ended December 31, 2010, we recorded a non-cash charge of $106.4 million after-tax related to the acceleration of deferred compensation in the third quarter of 2010 as a result of a modification of our deferred compensation plan and merger-related after-tax expenses of $16.5 million related to the merger with TWPG.
(4) For the nine months ended September 30, 2010, we recorded merger-related after-tax expenses of $116.9 million. Our earnings were insufficient to cover fixed charges by $67.0 million for the nine months ended September 30, 2010.
(5) For the nine months ended September 30, 2011, we recorded litigation-related and certain merger-related after-tax expenses of $29.4 million.