EX-12.1 2 d41105exv12w1.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.
                               
    NINE MONTHS    
    ENDED SEPTEMBER 30,   YEARS ENDED DECEMBER 31,
(dollars in thousands)   2005   2006   2001   2002   2003   2004   2005
Net income (loss)
   35,860   36,751   (108,634 ) (36,328 ) (39,755 ) 13,155   41,779
 
                            
Income tax (benefit) expense
   26,126   28,365   (45,674 ) (19,694 ) (23,573 ) 11,305   31,899
Fixed charges
   108,673   127,170   174,143   158,084   142,545   127,933   147,069
                             
 
                            
Earnings
   170,659   192,286   19,835   102,062   79,217   152,393   220,747
                             
 
                            
Interest expense, net
   65,778   80,753   132,200   112,404   93,285   75,584   89,160
 
                            
Rents under leases representative of an interest factor (1/3)
   42,622   46,144   41,578   45,315   48,895   51,984   57,544
Preferred dividends
   273   273   365   365   365   365   365
                             
 
              
Fixed charges
   108,673   127,170   174,143   158,084   142,545   127,933   147,069
                             
 
                            
Ratio of earnings to fixed charges(2)
   1.6 x 1.5 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.