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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1998 1997 1996 1995 1994
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Earnings
Income (loss) from continuing operations $ (140,552) $ 85,897 $ 140,656 $ 100,539 $ (11,351)
Add:
Loss from unconsolidated affiliate 117,158
Provision for income taxes (33,291) 65,931 85,512 63,938 32,904
Fixed charges 98,544 92,738 59,514 42,138 32,389
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Earnings, as adjusted (A) $ (75,299) $ 244,566 $ 285,682 $ 206,615 $ 171,100
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Fixed charges
Other interest expense, including
interest on capital leases $ 70,668 $ 47,453 $ 37,179 $ 21,672 $ 16,118
Estimated interest component of
rental expense 27,876 26,584 22,335 20,466 16,271
Prepayment penalties on early
extinguishment of debt 18,701
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Total fixed charges 98,544 92,738 59,514 42,138 32,389
Preferred stock dividends, as adjusted 31,798 32,351 35,768 24,892 18,908
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Total fixed charges and preferred
stock dividends (B) $ 130,342 $ 125,089 $ 95,282 $ 67,030 $ 51,297
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Ratio of earnings to fixed charges and
preferred stock dividends (A) divided
by (B) (0.6) (1) 2.0 (2) 3.0 (3) 3.1 3.3
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(1) 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.
(2) Excluding the effect of transformation costs, the ratio of earnings to fixed charges and preferred stock dividends (excluding
finance subsidiaries) for the fiscal year ended September 30, 1997 is 3.0.
(3) Excluding the effect of transformation costs, the ratio of earnings to fixed charges and preferred stock dividends (excluding
finance subsidiaries) for the fiscal year ended September 30, 1996 is 3.2.