EX-12.4 6 dex124.htm RATIO OF EARNINGS AND PREFERRED STOCK DIV EXCL CAP Ratio of Earnings and Preferred Stock Div excl Cap
 
EXHIBIT 12.4
 
IKON OFFICE SOLUTIONS, INC.
RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(EXCLUDING CAPTIVE FINANCE SUBSIDIARIES)
(dollars in thousands)
 
    
Fiscal Year Ended September 30
  
    
2002
     
2001
     
2000
     
1999
     
1998
  
Earnings
                                             
Income (loss) from continuing operations
   
$
40,147
 
   
$
(79,276
)
   
$
(53,483
)
   
$
(51,437
)
   
$
(140,552
)
Add:
                                             
Provision for income taxes
   
 
12,296
 
   
 
(3,868
)
   
 
7,388
 
   
 
(7,378
)
   
 
(33,291
)
Fixed charges
   
 
90,108
 
   
 
109,202
 
   
 
104,211
 
   
 
103,085
 
   
 
98,544
 
    
  
  
  
  
Earnings, as adjusted (A)
   
 
142,551
 
   
 
26,058
 
   
 
58,116
 
   
 
44,270
 
   
 
(75,299
)
    
  
  
  
  
Fixed charges
                                             
Other interest expense including interest on capital leases
   
 
54,389
 
   
 
69,373
 
   
 
69,821
 
   
 
71,225
 
   
 
70,668
 
Estimated interest component of rental expense
   
 
35,719
 
   
 
39,829
 
   
 
34,390
 
   
 
31,860
 
   
 
27,876
 
    
  
  
  
  
Total fixed charges
   
 
90,108
 
   
 
109,202
 
   
 
104,211
 
   
 
103,085
 
   
 
98,544
 
Preferred stock dividends, as adjusted
   
 
—  
 
   
 
—  
 
   
 
—  
 
   
 
—  
 
   
 
31,798
 
    
  
  
  
  
Total fixed charges and preferred stock dividends (B)
   
$
90,108
 
   
$
109,202
 
   
$
104,211
 
   
$
103,085
 
   
$
130,342
 
    
  
  
  
  
Ratio of earnings to fixed charges (A) divided by (B)
   
 
1.6
(1)
   
 
0.2
(2)
   
 
0.6
(3)
   
 
0.4
(4)
   
 
(0.6
)(5)
    
  
  
  
  
 
(1)
 
Excluding the effect of the reversal of restructuring charges, the ratio of earnings to fixed charges (excluding captive finance subsidiaries) for the fiscal year ended September 30, 2002 is 1.5.
 
(2)
 
Excluding the effect of restructuring and asset impairment charges, reserve adjustments related primarily to the Company’s exit of telephony operations, gain from discontinued operations and a tax reserve adjustment related to the Company’s use of leveraged corporate owned life insurance programs, the ratio of earnings to fixed charges (excluding captive finance subsidiaries) for the fiscal year ended September 30, 2001 is 0.9.
 
(3)
 
Excluding the effect of the gain on sale of investment, extraordinary gain from the early extinguishment of debt, shareholder litigation insurance proceeds, restructuring and asset impairment charge, and benefit from discontinued operations, the ratio of earnings to fixed charges (excluding captive finance subsidiaries) for the fiscal year ended September 30, 2000 is 1.8.
 
(4)
 
Excluding the effect of the asset securitization gain and the shareholder litigation settlement charge, the ratio of earnings to fixed charges (excluding captive finance subsidiaries) for the fiscal year ended September 30, 1999 is 1.4.
 
(5)
 
Excluding the effect of transformation costs and the loss from asset impairment, the ratio of earnings to fixed charges (excluding captive finance subsidiaries) for the fiscal year ended September 30, 1998 is 0.2.