EX-12.B 9 d71171exv12wb.htm EX-12.B exv12wb
Exhibit 12(b)
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.
                                 
       
    YEARS ENDED DECEMBER 31,  
(dollars in thousands)   2004   2005     2006     2007     2008   2009  
Net income (loss)
   $ 24,219   $ 47,470     $ 43,279     $ 45,551   $ 10,360 (55,823 )
Income tax expense (benefit)
     11,764     35,488       34,520       37,283     14,487 (36,146 )
Fixed charges
     116,409     137,889       171,686       224,932     230,078 263,011
 
                              
Earnings
     152,392     220,847       249,485       307,766     254,925 171,042
 
                            
Interest expense, net
     64,425     80,345       109,806       158,609     156,716 191,455
Rent under leases representative of an interest factor
     51,984     57,544       61,880       66,323     73,362 71,556
Preferred dividends
     0     0       0       0     0 0
 
                            
Fixed charges
     116,409     137,889       171,686       224,932     230,078 263,011
 
                            
Ratio of earnings to fixed charges(2)
     1.3x     1.6x       1.5x       1.4x     1.1x 0.7x
 
                              
 
(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 year ended December 31, 2009, earnings were insufficient to cover fixed charges by $92.0 million.