EX-12.(A) 3 c65101a1ex12-a.txt EXHIBIT 12.(A) EXHIBIT 12.(a) NORSTAN, INC. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
--------- THREE ----------------------------------------------------------------- MONTHS YEAR ENDED ENDED ----------------------------------------------------------------- 7/28/01 4/30/97 4/30/98 4/30/99 4/30/00 4/30/01 --------- ----------- ----------- ----------- ------------ ------------ EARNINGS: Pre-tax income from continuing operations $ 153,000 $17,317,000 $ 6,646,000 $ 6,472,000 $(32,579,000) $(20,343,000) Plus - Fixed charges (see below) 2,309,500 5,549,465 7,761,633 9,305,789 10,678,375 11,033,508 Amortization of capitalized interest -- -- -- -- -- -- Dist income of equity investees -- -- -- -- -- -- Pre-tax losses of equity investees -- -- -- -- -- -- ---------- ---------- ---------- ---------- ----------- ----------- subtotal 2,462,500 22,866,465 14,407,633 15,777,789 (21,900,625) (9,309,492) Less - Interest capitalized -- -- -- -- -- -- Preference security dividend requirements -- -- -- -- -- -- ---------- ---------- ---------- ---------- ----------- ----------- EARNINGS 2,462,500 22,866,465 14,407,633 15,777,789 (21,900,625) (9,309,492) ========== ========== ========== ========== =========== =========== FIXED CHARGES: Interest Expensed/Capitalized (1) $ 1,446,000 $ 1,866,000 $ 3,909,000 $ 4,782,000 $ 6,315,000 $ 7,988,000 Amortized costs related to indebtedness (2) 218,833 45,465 21,300 52,122 66,708 322,175 Estimated interest within rental expense (3) 644,667 3,638,000 3,831,333 4,471,667 4,296,667 2,723,333 Preference security dividend requirements -- -- -- -- -- -- ---------- ---------- ---------- ---------- ----------- ----------- FIXED CHARGES 2,309,500 5,549,465 7,761,633 9,305,789 10,678,375 11,033,508 ========== ========== ========== ========== =========== =========== RATIO OF EARNINGS TO FIXED CHARGES 1.07 4.12 1.86 1.70 (2.05) (0.84) ========== ========== ========== ========== =========== =========== DEFICIENCY N/A N/A N/A N/A 32,579,000 20,343,000 ========== ========== ========== ========== =========== =========== (1) Interest Expense as reported on Forms 10-K and 10-Q (no capitalized interest to report). (2) Amortization of deferred financing costs (capitalized fees related to bank agreements). (3) One-third of total rent expense (lease expense per notes to consolidated financial statements included in Form 10-K). 1,934,000 10,914,000 11,494,000 13,415,000 12,890,000 8,170,000 /3 /3 /3 /3 /3 /3 ---------- ---------- ---------- ---------- ----------- ----------- 644,667 3,638,000 3,831,333 4,471,667 4,296,667 2,723,333 ========== ========== ========== ========== =========== ===========