EX-12.1 5 d39913exv12w1.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 Media’s ratio of earnings to fixed charges for the periods indicated.
                                                                 
                                                            MONTHS  
                                            SIX MONTHS     ENDED  
    YEARS ENDED DECEMBER 31,     ENDED JUNE 30,     JUNE 30,  
(dollars in thousands)   2001     2002     2003     2004     2005     2005     2006     2006  
 
                                                               
Net (loss) income
  $ (97,566 )   $ (24,958 )   $ (22,168 )   $ 24,219     $ 47,470     $ 27,577     $ 20,736     $ 40,629  
 
                                                               
Income tax (benefit) expense
    (38,870 )     (12,434 )     (12,338 )     11,764       35,488       19,385       15,668       31,771  
Fixed charges
    156,168       139,376       126,245       116,409       137,889       64,570       80,947       154,266  
 
                                               
 
                                                               
Earnings
    19,732       101,984       91,739       152,392       220,847       111,532       117,351       226,666  
 
                                               
 
                                                               
Interest expense, net
    114,590       94,061       77,350       64,425       80,345       36,324       50,333       94,354  
 
                                                               
Rents under leases representative of an interest factor (1/3)
    41,578       45,315       48,895       51,984       57,544       28,246       30,614       59,912  
Preferred dividends
    0       0       0       0       0       0       0       0  
 
                                               
 
                                                               
Fixed charges
    156,168       139,376       126,245       116,409       137,889       64,570       80,947       154,266  
 
                                               
 
                                                               
Ratio of earnings to fixed charges(2)
    0.1x       0.7x       0.7x       1.3x       1.6x       1.7x       1.4x       .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 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 and the twelve months ended June 30, 2006, earnings were insufficient to cover fixed charges by $136.4 million, $37.4 million, $34.5 million and $72.4 million, respectively.