EX-12.2 6 d39913exv12w2.htm STATEMENT RE: COMPUTATION OF EBITDA TO NET INTEREST EXPENSE exv12w2
 

Exhibit 12.2
COMPUTATION OF RATIO OF EBITDA TO INTEREST EXPENSE, NET(1)
     The following table sets forth Lamar Media’s ratio of EBITDA to expense interest, net for the periods indicated.
                                                                 
                                                            TWELVE  
                                                            MONTHS  
                                            SIX MONTHS ENDED     ENDED  
    YEARS ENDED DECEMBER 31,     JUNE 30,     JUNE 30,  
(dollars in                                                
thousands)   2001     2002     2003     2004     2005     2005     2006     2006  
 
                                                                
EBITDA(2)
   $ 327,704     $ 328,501     $ 287,551     $ 394,464     $ 453,392     $ 224,440     $ 234,004     $ 462,956  
 
                                                                
Interest expense, net
     114,590       94,061       77,350       64,425       80,345       36,324       50,333       94,354  
 
                                                                
Ratio of EBITDA to expense interest, net
     2.9x       3.5x       3.7x       6.1x       5.6x       6.2x       4.6x       4.9x  
 
                                                
 
(1)   The ratio of EBITDA to interest expense, net is defined as EBITDA divided by net interest expense.
 
(2)   EBITDA is defined as earnings (loss) before interest, taxes, depreciation and amortization. For the fiscal years ended 2002, 2003 and 2005, EBITDA includes $5.9 million, $21.1 million and $4.0 million in loss on debt extinguishment, respectively, and EBITDA for the year ended 2003 also includes a cumulative effect of a change in accounting principle of $40.2 million. EBITDA represents a measure that we believe is customarily used by investors and analysts to evaluate the financial performance of companies in the media industry. Our management also believes that EBITDA is useful in evaluating our core operating results. However, EBITDA is not a measure of financial performance under accounting principles generally accepted in the United States of America and should not be considered an alternative to operating income or net income as an indicator of our operating performance or to net cash provided by operating activities as a measure of our liquidity. Because EBITDA is not calculated identically by all companies, the presentation in this prospectus may not be comparable to those disclosed by other companies. In addition, the definition of EBITDA differs from the definition of EBITDA applicable to the covenants for the notes. Please refer to the reconciliation of EBITDA to net income (loss) on page 11 of the prospectus.