EX-12.(A) 10 d68637exv12wxay.htm EX-12.(A) exv12wxay
Exhibit 12(a)
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES(1)
     The following table sets forth Lamar Media’s ratio of earnings to fixed charges for the periods indicted.
                                                                 
                                                            Twelve  
                                                            Months  
                                            Six Months     Ended  
    Year Ended December 31,     Ended June 30,     June 30,  
(dollars in thousands)   2004     2005     2006     2007     2008     2008     2009(2)     2009  
Net income (loss)
  $ 24,219     $ 47,470     $ 45,232     $ 47,001     $ 11,037     $ 13,557     $ (31,930 )   $ (34,450 )
Income tax expense (benefit)
    11,764       35,488       35,753       38,198       14,914       12,330       (16,946 )     (14,362 )
Fixed charges
    116,409       137,889       171,686       224,932       230,078       114,073       124,398       240,403  
 
                                               
Earnings
    152,392       220,847       252,671       310,131       256,029       139,960       75,522       191,591  
 
                                               
Interest expense, net
    64,425       80,345       109,806       158,609       156,716       78,633       87,899       165,982  
Rent under leases representative of an interest factor (1/3)
    51,984       57,544       61,880       66,323       73,362       35,440       36,499       74,421  
Preferred dividends
    0       0       0       0       0       0       0       0  
 
                                               
Fixed Charges
    116,409       137,889       171,686       224,932       230,078       114,073       124,398       240,403  
 
                                               
Ratio of earnings to fixed charges
    1.3x       1.6x       1.5x       1.4x       1.1x       1.2x       0.6x       0.8x  
 
                                               
 
(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 expenses, 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 six and twelve months ended June 30, 2009, earnings were insufficient to cover fixed charges by $48.9 million and $48.8 million, respectively.