EX-12.2 3 d38528exv12w2.htm STATEMENT RE: COMPUTATION OF EARNINGS TO FIXED CHARGES FOR LAMAR MEDIA exv12w2
 

Exhibit 12.2
COMPUTATION OF RATION OF EARNINGS TO FIXED CHARGES(1)
     The following table sets forth Lamar Media’s ratio of earnings to fixed charges for the periods indicted.
                                                         
    SIX MONTHS        
    ENDED JUNE 30,     YEARS ENDED DECEMBER 31,  
(dollars in thousands)   2005     2006     2001     2002     2003     2004     2005  
Net income (loss)
     27,577       20,736     $ (97,566 )   $ (24,958 )   $ (22,168 )   $ 24,219     $ 47,470  
Income tax (benefit) expense
     19,385       15,668       (38,870 )     (12,434 )     (12,338 )     11,764       35,488  
Fixed charges
     64,570       80,947       153,964       139,376       126,245       116,409       137,889  
 
                                          
Earnings
     111,532       117,351       17,528       101,984       91,739       152,392       220,847  
 
                                          
Interest expense, net
     36,324       50,333       112,386       94,061       77,350       64,425       80,345  
Rent 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
     0       0       0       0       0       0       0  
 
                                          
Fixed charges
     64,570       80,947       153,964       139,376       126,245       116,409       137,889  
 
                                          
Ratio of earnings to fixed charges(2)
     1.7x       1.4x       0.1x       0.7x       0.7x       1.3x       1.6x  
 
                                          
 
(1)   The ratio of earnings to fixed charges is defined as earnings divided by fixed charges. For purposes of this ratio, earnings is difined as net income (loss) before income taxes and cumulative effect of a change in accounting principle and fixed charges. Fixed charges is difined 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 years ended December 31, 2001, 2002 and 2003, earnings were insufficient to cover fixed charges by $136.4 million, $37.4 million and $34.5 million, respectively.