EXHIBIT 12 COMPUTATION OF PRO FORMA, AS ADJUSTED RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS FOR THE YEAR ENDED MARCH 31, 1997 AND THE SIX MONTHS ENDED SEPTEMBER 30, 1997: (UNAUDITED) Six Months (Dollars in thousands) Year ended ended March 31, September 30, 1997 1997 ---------- ------------- Income before income taxes ....................... $2,082 $ 898 Add: Fixed charges .................................. 405 202 ------ ------ Income as adjusted ............................. $2,487 $1,100 ====== ====== Fixed charges: Interest expense ............................... $ 345 $ 172 Portion of rental expense representative of interest .................................. 60 30 ------ ------ Total fixed charges .............................. 405 202 Preferred stock dividends (1) .................... 1,700 850 ------ ------ Combined fixed charges and preferred stock dividends ..................................... $2,105 $1,052 ====== ====== Ratio of earnings to combined fixed charges and preferred stock dividends .................. 1.18 1.05 ====== ====== (1) Included are preferred stock dividends of $1,020 ($1,700 on a pre tax basis) and $255 ($425 on a pre tax basis) representing the pre tax income which would be required to cover such dividend requirements based on the Company's effective income tax rate for the year ended March 31, 1997 and for the six months ended September 30, 1997, respectively.