EX-12 4 ex-12.txt EXHIBIT 12
PAPER WAREHOUSE, INC. AND SUBSIDIARIES Computation of Ratio of Earnings to Fixed Charges EXHIBIT 12 For the Three Months Ended April 28, 2000 and April 30, 1999 and For the Five Years Ended January 28, 2000 ($'S IN THOUSANDS) THREE MONTHS ENDED FISCAL YEAR ENDED --------------------- --------------------------------------- APRIL 28, APRIL 30, JANUARY 28, JANUARY 29, JANUARY 30, RATIO OF EARNINGS TO FIXED CHARGES: 2000 1999 2000 1999 1998 --------- --------- ----------- ----------- ----------- Earnings: Consolidated net (loss) earnings $ (985) $(1,217) $(4,448) $ (521) $ (207) Extraordinary charge, net -- -- -- -- 110 Cumulative effect of accounting change, net -- 108 108 -- -- Income taxes (1) (645) (742) (2,970) (323) 22 ------- ------- ------- ------- ------- Total (loss) earnings before extraordinary charge and cumulative effect of accounting change (1,630) (1,851) (7,310) (844) (75) Fixed Charges: Interest expense 401 220 1,182 279 860 Interest portion of rental expense 862 774 3,281 2,378 1,779 ------- ------- ------- ------- ------- Total fixed charges 1,263 994 4,463 2,657 2,639 Earnings available for fixed charges $ (367) $ (857) $(2,847) $ 1,813 $ 2,564 ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- Ratio of earnings before extraordinary charge and cumulative effect of accounting change to fixed charges (2) -- -- -- -- -- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ($'S IN THOUSANDS) FISCAL YEAR ENDED ------------------------- JANUARY 31, FEBRUARY 2, JANUARY 27, RATIO OF EARNINGS TO FIXED CHARGES: 1997 1996 1995 ----------- ----------- ----------- Earnings: Consolidated net (loss) earnings $ 808 $ 797 $ 794 Extraordinary charge, net -- -- -- Cumulative effect of accounting change, net -- -- -- Income taxes (1) 500 494 492 ------- ------- ------- Total (loss) earnings before extraordinary charge and cumulative effect of accounting change 1,308 1,291 1,286 Fixed Charges: Interest expense 834 547 227 Interest portion of rental expense 1,436 1,046 673 ------- ------- ------- Total fixed charges 2,270 1,593 900 Earnings available for fixed charges $ 3,578 $ 2,884 $ 2,186 ------- ------- ------- ------- ------- ------- Ratio of earnings before extraordinary charge and cumulative effect of accounting change to fixed charges (2) 1.58 1.81 2.43 ------- ------- ------- ------- ------- -------
(1) Prior to November 1997, the Company was taxed as an S-Corporation. This amount reflects the pro forma provision for taxes as if the Company were taxed as a C-Corporation (2) For the three months ended April 28, 2000 and April 30, 1999, earnings were not adequate to cover fixed charges by approximately $1.6 million and $1.9 million, respectively. For the fiscal years ended January 28, 2000, January 29, 1999, and January 30, 1998 earnings were not adequate to cover fixed charges by approximately $7.3 million, $844,000 and $75,000, respectively.