EXHIBIT 12
THE CREDIT STORE, INC.
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
Predecessor The Credit Store, Inc.
----------- ------------------------------------------------
Year January 1, Nine Months
Ended 1996 Year Ended May 31, Ended
December 31, October 8, ---------------------------------------------- February 28,
1995 1996 1997 1998 1999 2000 2001
---- ---- ---- ---- ---- ---- ----
Income before taxes 2,727,711 (1,932,768) (14,405,555) (29,445,031) 1,889,271 2,029,820 (3,798,598)
Less:
Equity interest in income 10,306 277,159 325,183 (332,760) (117,991)
loss from investees
Plus:
Distribution from
investees - - - - 147,874
Fixed Charges - - 984,370 5,213,168 4,469,218 5,513,622 4,827,065
--------- ---------- ----------- ----------- --------- --------- ----------
Total Earnings 2,727,711 (1,932,768) (13,431,491) (24,509,022) 6,033,306 7,876,202 1,294,332
Fixed Charges:
Interest expense - - 751,729 4,760,905 4,029,491 4,981,949 4,261,618
Amortization of debt costs - - - - - - -
Approximation of interest
in rental expense - - 232,641 452,263 439,727 531,673 565,447
--------- ---------- ----------- ----------- --------- --------- ----------
Total Fixed Charges - - 984,370 5,213,168 4,469,218 5,513,622 4,827,065
Ratio of earnings to fixed charges N/A N/A - - 1.35 1.43 -
Deficiency of earnings to fixed charges N/A N/A (14,415,861) (29,722,190) - - (3,532,733)
(additional earnings to achieve a
coverage ratio of 1:1)