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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1997 1996 1995 1994 1993
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Earnings
Income from continuing operations $ 85,897 $ 140,656 $ 100,539 $ (11,351) $ 53,174
Add:
Loss from unconsolidated affiliate 117,158 2,538
Provision for income taxes 65,931 85,512 63,938 32,904 34,621
Fixed charges 92,738 59,514 42,138 32,389 25,707
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Earnings, as adjusted (A) $ 244,566 $ 285,682 $ 206,615 $ 171,100 $ 116,040
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Fixed charges
Other interest expense, including
interest on capital leases $ 47,453 $ 37,179 $ 21,672 $ 16,118 $ 15,382
Estimated interest component of
rental expense 26,584 22,335 20,466 16,271 10,325
Prepayment penalties on early
extinguishment of debt 18,701
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Total fixed charges 92,738 59,514 42,138 32,389 25,707
Preferred stock dividends, as adjusted 32,351 35,768 24,892 18,908 15,794
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Total fixed charges and preferred
stock dividends $ 125,089 $ 95,282 $ 67,030 $ 51,297 $ 41,501
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Ratio of earnings to fixed charges
(A) divided by (B) 2.0(1) 3.0(2) 3.1 3.3 2.8
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(1) Excluding the effect of transformation costs, the ratio of earnings to
fixed charges for the fiscal year ended September 30, 1997 is 3.0.
(2) Excluding the effect of transformation costs, the ratio of earnings to
fixed charges for the fiscal year ended September 30, 1996 is 3.2.