EX-12.(B) 11 d68637exv12wxby.htm EX-12.(B) exv12wxby
Exhibit 12(b)
COMPUTATION OF RATIO OF EBITDA TO INTEREST EXPENSE, NET(1)
     The following table sets forth Lamar Media’s ratio of EBITDA to net interest expense, for the periods indicated.
                                                                 
                                                            Twelve  
                                                            Months  
                                            Six Months     Ended  
    Year Ended December 31,     Ended June 30,     June 30,  
(dollars in thousands)   2004     2005     2006     2007     2008     2008     2009     2009  
EBITDA(2)
  $ 394,464     $ 453,392     $ 492,476     $ 550,687     $ 514,321     $ 261,516     $ 208,286     $ 461,091  
Interest expense, net
    64,425       80,345       109,806       158,609       156,716       78,633       87,899       165,982  
Ratio of EBITDA to expense interest, net
    6.1x       5.6x       4.5x       3.5x       3.3x       3.3x       2.4x       2.8x  
 
                                               
 
(1)   The ratio of EBITDA to interest expense, net is defined as EBITDA divided by net interest expense.
 
(2)   EBITDA is defined as earnings (loss) before interest, taxes, depreciation and amortization. EBITDA represents a measure that we believe is customarily used by investors and analysts to evaluate the financial performance of companies in the media industry. Our management also believes that EBITDA is useful in evaluating our core operating results. However, EBITDA is not a measure of financial performance under accounting principles generally accepted in the United States of America and should not be considered an alternative to operating income or net income as an indicator of our operating performance or to net cash provided by operating activities as a measure of our liquidity. Because EBITDA is not calculated identically by all companies, the presentation in this prospectus may not be comparable to those disclosed by other companies. In addition, the definition of EBITDA differs from the definition of EBITDA applicable to the covenants for the notes.