EXHIBIT 12.4
IKON OFFICE SOLUTIONS, INC. AND SUBSIDIARIES
RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(EXCLUDING CAPTIVE FINANCE SUBSIDIARIES)
(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 continued operations $ (51,437) $ (140,552) $ 85,897 $ 140,656 $ 100,539
Add:
Provision for income taxes (7,378) (33,291) 65,931 85,512 63,938
Fixed charges 103,085 98,544 92,738 59,514 42,138
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Earnings, as adjusted (A) $ 44,270 $ (75,299) $ 244,566 $ 285,682 $ 206,615
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Fixed charges
Other interest expense, including
Interest on capital leases $ 71,225 $ 70,668 $ 47,453 $ 37,179 $ 21,672
Estimated interest component of
rental expense 31,860 27,876 26,584 22,335 20,466
Prepayment penalties on early
extinguishment of debt 18,701
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Total fixed charges 103,085 98,544 92,738 59,514 42,138
Preferred stock dividends, as adjusted 31,798 32,351 $ 35,768 24,892
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Total fixed charges and preferred
stock dividends $ 103,085 $ 130,342 $ 125,089 $ 95,282 $ 67,030
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Ratio of earnings to fixed charges
(A) divided by (B) 0.4 (1) (0.6) (2) 2.0 (3) 3.0 (4) 3.1
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(1) Excluding the effect of the shareholder litigation settlement charge,
the ratio of earnings to fixed charges (excluding finance subsidiaries)
for the fiscal year ended September 30, 1999 is 1.4.
(2) Excluding the effect of transformation costs and the loss from asset
impairment, the ratio of earnings to fixed charges (excluding finance
subsidiaries) for the fiscal year ended September 30, 1998 is .2.
(3) Excluding the effect of transformation costs, the ratio of earnings to fixed
charges (excluding finance subsidiaries) for the fiscal year ended September
30, 1997 is 3.0.
(4) Excluding the effect of transformation costs, the ratio of earnings to fixed
charges (excluding finance subsidiaries) for the fiscal year ended September
30, 1996 is 3.2.