EX-12.1 2 d38528exv12w1.htm STATEMENT RE: COMPUTATION OF EARNINGS TO FIXED CHARGES exv12w1
 

Exhibit 12.1
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.
                               
    SIX MONTHS    
    ENDED JUNE 30,   YEARS ENDED DECEMBER 31,
(dollars in thousands)   2005   2006   2001   2002   2003   2004   2005
Net income (loss)
   23,779   19,912   (108,634 ) (36,328 ) (39,755 ) 13,155   41,779
 
                            
Income tax (benefit) expense
   17,371   15,208   (45,674 ) (19,694 ) (23,573 ) 11,305   31,899
Fixed charges
   70,332   82,160   174,143   158,084   142,545   127,933   147,069
                             
 
                            
Earnings
   111,482   117,280   19,835   102,062   79,217   152,393   220,747
                             
 
                            
Interest expense, net
   41,904   51,364   132,200   112,404   93,285   75,584   89,160
 
                            
Rents under leases representative of an interest factor (1/3)
   28,246   30,614   41,578   45,315   48,895   51,984   57,544
Preferred dividends
   182   182   365   365   365   365   365
                             
 
              
Fixed charges
   70,332   82,160   174,143   158,084   142,545   127,933   147,069
                             
 
                            
Ratio of earnings to fixed charges(2)
   1.6 x 1.4 x 0.1 x 0.6 x 0.6 x 1.2 x 1.5 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, 2001, 2002 and 2003, earnings were insufficient to cover fixed charges by $154.3 million, $56.0 million and $63.3 million, respectively.