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PAPER WAREHOUSE, INC. AND SUBSIDIARIES
Computation of Ratio of Earnings to Fixed Charges
For the Nine Months Ended October 27, 2000 and October 29, 1999
and For the Five Years Ended January 28, 2000
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($'s in thousands) NINE MONTHS ENDED FISCAL YEAR ENDED
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OCTOBER 27, OCTOBER 29, JANUARY 28, JANUARY 29,
RATIO OF EARNINGS TO FIXED CHARGES: 2000 1999 2000 1999
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Earnings:
Consolidated net (loss) earnings $ (104) $(1,534) $(4,448) $ (521)
Extraordinary charge, net - - - -
Cumulative effect of accounting change, net - 108 108 -
Income taxes (1) (53) (954) (2,970) (323)
------- ------- ------- -------
Total (loss) earnings before extraordinary charge
and cumulative effect of accounting change (157) (2,380) (7,310) (844)
Fixed Charges:
Interest expense 1,289 799 1,182 279
Interest portion of rental expense 2,548 2,411 3,281 2,378
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Total fixed charges 3,837 3,210 4,463 2,657
Earnings available for fixed charges $ 3,680 $ 830 $(2,847) $ 1,813
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Ratio of earnings before extraordinary charge and cumulative
effect of accounting change to fixed charges (2) --- --- --- ---
======= ======= ======= =======
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($'s in thousands) FISCAL YEAR ENDED
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JANUARY 30, JANUARY 31, FEBRUARY 2, JANUARY 27,
RATIO OF EARNINGS TO FIXED CHARGES: 1998 1997 1996 1995
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Earnings:
Consolidated net (loss) earnings $ (207) $ 808 $ 797 $ 794
Extraordinary charge, net 110 - - -
Cumulative effect of accounting change, net - - - -
Income taxes (1) 22 500 494 492
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Total (loss) earnings before extraordinary charge
and cumulative effect of accounting change (75) 1,308 1,291 1,286
Fixed Charges:
Interest expense 860 834 547 227
Interest portion of rental expense 1,779 1,436 1,046 673
Total fixed charges ------- ------- ------- -------
2,639 2,270 1,593 900
Earnings available for fixed charges $ 2,564 $ 3,578 $ 2,884 $ 2,186
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Ratio of earnings before extraordinary charge and cumulative
effect of accounting change to fixed charges (2) --- 1.58 1.81 2.43
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(1) Prior to November 1997, the Company was taxed as an S-Corporation. This
amount reflects the pro forma provision for taxes as if the Company were
taxed as a C-Corporation
(2) For the six months ended October 27, 2000 and October 29, 1999,
earnings were not adequate to cover fixed charges by approximately $157,000
and $2.4 million, respectively. For the fiscal years ended January 28,
2000, January 29, 1999, and January 30, 1998 earnings were not adequate to
cover fixed charges by approximately $7.3 million, $844,000 and $75,000,
respectively.
