EX-12.A 5 d78824exv12wa.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)   2005     2006     2007     2008     2009(2)     2010(2)  
Net income (loss)
   $ 41,779     $ 41,946     $ 40,982     $ 2,162     $ (58,038 )   $ (40,102 )
Income tax expense (benefit)
     31,899       32,994       33,901       9,349       (36,101 )     (23,469 )
Fixed charges
     147,069       173,889       232,691       242,877       268,441       254,098  
 
                                    
Earnings
     220,747       248,829       307,574       254,388       174,302       190,527  
 
                                    
Interest expense, net
     89,160       111,644       166,003       169,150       196,520       185,681  
Rents under leases representative of an interest factor
     57,544       61,880       66,323       73,362       71,556       68,052  
Preferred dividends
     365       365       365       365       365       365  
 
                                    
Fixed charges
     147,069       173,889       232,691       242,877       268,441       254,098  
 
                                    
Ratio of earnings to fixed charges
     1.5 x     1.4 x     1.3 x     1.0 x     0.6 x     0.7 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 years ended December 31, 2010 and 2009, earnings were insufficient to cover fixed charges by $63.6 million and $94.1 million, respectively.