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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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 0 18,701
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Total fixed charges 228,365 192,021 127,970 82,672 60,481
Preferred stock dividends, as adjusted 31,798 32,458 36,709 25,180 18,908
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Total fixed charges and preferred
stock dividends (B) $ 260,163 $ 224,479 $ 164,679 $ 107,852 $ 79,389
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Ratio of earnings to fixed charges and
preferred stock dividends (A) divided
by (B) 0.6(1) 1.8(2) 2.4(3) 2.5 2.8
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(1) Excluding the effect of transformation costs and the loss from asset impairment, the ratio of earnings to fixed
charges and preferred stock dividends for the fiscal year ended September 30, 1998 is 1.0.
(2) Excluding the effect of transformation costs, the ratio of earnings to fixed charges and preferred stock dividends for the
fiscal year ended September 30, 1997 is 2.4.
(3) Excluding the effect of transformation costs, the ratio of earnings to fixed charges and preferred stock dividends for the
fiscal year ended September 30, 1996 is 2.6.