EX-12.1 2 d64916exv12w1.htm EX-12.1 exv12w1
Exhibit 12.1
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES(1)
The following table sets forth Lamar Advertising’s ratio of earnings to fixed charges for the periods indicated.
                                                         
    YEARS ENDED DECEMBER 31,     SEPTEMBER 30,
(dollars in thousands)   2003     2004     2005     2006     2007     2008     2007  
Net income (loss)
    (39,755 )     13,155       41,779       43,899       46,217       16,560       41,744  
Income tax (benefit) expense
    (23,573 )     11,305       31,899       34,227       37,185       22,876       33,620  
Fixed charges
    142,545       127,933       147,069       173,889       226,537       173,156       166,455  
 
                                         
Earnings
    79,217       152,393       220,747       252,015       309,939       212,592       241,819  
 
                                         
Interest expense, Net
    93,285       75,584       89,160       111,644       159,849       118,556       116,628  
Rents under leases representative of an interest factor
(1/3)
    48,895       51,984       57,544       61,880       66,323       54,327       49,554  
Preferred dividends
    365       365       365       365       365       273       273  
 
                                         
Fixed Charges
    142,545       127,933       147,069       173,889       226,537       173,156       166,455  
 
                                         
Ratio of earnings to fixed charges(2)
    0.6 x     1.2 x     1.5 x     1.5 x     1.4 x     1.2 x     1.5 x
 
                                         
 
(1)   The ratio of earnings to fixed charges is defined as earnings divided by fixed charges. For purposes of this ratio, earnings is defined as net income (loss) before income taxes and cumulative effect of a change in accounting principle and fixed charges. Fixed charges is defined as the sum of interest expense, preferred stock dividends and the component of rental expense that we believe to be representative of the interest factor for those amounts.
 
(2)   For the year ended December 31, 2003 earnings were insufficient to cover fixed charges by $63.3 million.