EXHIBIT 12.3
IKON OFFICE SOLUTIONS, INC. AND SUBSIDIARIES
RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(dollars in thousands)
Fiscal Year Ended September 30
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1999 1998 1997 1996 1995
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Earnings
Income (loss) from continuing operations $ 33,836 $ (83,050) $ 122,362 $ 164,893 $ 115,011
Add:
Provision for income taxes 45,555 8,863 90,751 107,984 75,501
Fixed charges 230,375 228,365 192,021 127,970 82,672
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Earnings, as adjusted (A) $ 309,766 $ 154,178 $ 405,134 $ 400,847 $ 273,184
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Fixed charges
Other interest expense, including
interest on capital leases $ 197,901 $ 199,816 $ 146,117 $ 105,222 $ 61,888
Estimated interest component of
rental expense 32,474 28,549 27,203 22,748 20,784
Prepayment penalties on early
extinguishment of debt 18,701
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Total fixed charges 230,375 228,365 192,021 127,970 82,672
Preferred stock dividends, as adjusted 31,798 32,458 36,709 25,180
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Total fixed charges and preferred
stock dividends $ 230,375 $ 260,163 $ 224,479 $ 164,679 $ 107,852
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Ratio of earnings to fixed charges
(A) divided by (B) 1.3(1) 0.6 (2) 1.8 (3) 2.4 (4) 2.5
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(1) Excluding the effect of the asset securitization gain and shareholder
litigation settlement charge, the ratio of earnings to fixed charges for
the fiscal year ended September 30, 1999 is 1.7.
(2) Excluding the effect of transformation costs and the loss from asset
impairment, the ratio of earnings to fixed charges for the fiscal year
ended September 30, 1998 is 1.0.
(3) Excluding the effect of transformation costs, the ratio of earnings to
fixed charges for the fiscal year ended September 30, 1997 is 2.4.
(4) Excluding the effect of transformation costs, the ratio of earnings to
fixed charges for the fiscal year ended September 30, 1996 is 2.6.