EX-12.1 4 d46520exv12w1.htm STATEMENT REGARDING 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.
                               
               
    YEARS ENDED DECEMBER 31,   MARCH 31,  
(dollars in thousands)   2002   2003   2004   2005   2006   2007   2006  
Net income (loss)
  (36,328 ) (39,755 ) 13,155   41,779   43,899   8,839   1,540  
 
                             
Income tax (benefit) expense
  (19,694 ) (23,573 ) 11,305   31,899   34,227   6,779   1,177  
Fixed charges
  158,084   142,545   127,933   147,069   173,889   47,463   39,110  
                               
 
                           
Earnings
  102,062   79,217   152,393   220,747   252,015   63,081   41,827  
                               
 
               
Interest expense, net
  112,404   93,285   75,584   89,160   111,644   30,755 23,630
 
               
Rents under leases representative of an interest factor (1/3)
  45,315   48,895   51,984   57,544   61,880   16,617 15,389
Preferred dividends
  365   365   365   365   365   91 91
                               
 
       
Fixed charges
  158,084   142,545   127,933   147,069   173,889   47,463 39,110
                               
 
               
Ratio of earnings to fixed charges(2)
  0.6 x 0.6 x 1.2 x 1.5 x 1.5 x 1.3 x 1.1 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, 2002 and 2003, earnings were insufficient to cover fixed charges by $56.0 million and $63.3 million, respectively.