EXHIBIT 12.1
IKON OFFICE SOLUTIONS, INC. AND SUBSIDIARIES
RATIO OF EARNINGS TO FIXED CHARGES
(dollars in thousands)
Fiscal Year Ended September 30
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1998 1997 1996 1995 1994
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Earnings
Income (loss) from continuing operations $ (83,050) $ 122,362 $ 164,893 $ 115,011 $ 1,996
Add:
Loss from unconsolidated affiliate 117,158
Provision for income taxes 8,863 90,751 107,984 75,501 41,315
Fixed charges 228,365 192,021 127,970 82,672 60,481
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Earnings, as adjusted (A) $ 154,178 $ 405,134 $ 400,847 $ 273,184 $ 220,950
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Fixed charges
Other interest expense, including
interest on capital leases $ 199,816 $ 146,117 $ 105,222 $ 61,888 $ 44,096
Estimated interest component of
rental expense 28,549 27,203 22,748 20,784 16,385
Prepayment penalties on early
extinguishment of debt 18,701
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Total fixed charges (B) $ 228,365 $ 192,021 $ 127,970 $ 82,672 $ 60,481
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Ratio of earnings to fixed charges
(A) divided by (B) 0.7 (1) 2.1 (2) 3.1 (3) 3.3 3.7
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(1) 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 1.1.
(2) Excluding the effect of transformation costs, the ratio of earnings to
fixed charges for the fiscal year ended September 30, 1997 is 2.8.
(3) Excluding the effect of transformation costs, the ratio of earnings to
fixed charges for the fiscal year ended September 30, 1996 is 3.3.