EX-12.A 8 d71171exv12wa.htm EX-12.A exv12wa
Exhibit 12(a)
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,  
(dollars in thousands)   2004   2005   2006   2007   2008   2009  
Net income (loss)
   13,155   41,779   41,946   40,982   2,162   (58,038 )
 
                
Income tax expense (benefit)
   11,305   31,899   32,994   33,901   9,349   (36,101 )
Fixed charges
   127,933   147,069   173,889   232,691   242,877   268,441  
                           
 
                  
Earnings
   152,393   220,747   248,829   307,574   254,388   174,302  
                           
 
                
Interest expense, net
   75,584   89,160   111,644   166,003   169,150   196,520  
 
                
Rents under leases representative of an interest factor
   51,984   57,544   61,880   66,323   73,362   71,556  
Preferred dividends
   365   365   365   365   365   365  
                           
 
        
Fixed charges
   127,933   147,069   173,889   232,691   242,877   268,441  
                           
 
                
Ratio of earnings to fixed charges(2)
   1.2 x 1.5 x 1.4 x 1.3 x 1.0 x 0.6 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, 2009, earnings were insufficient to cover fixed charges by $94.1 million.