EX-12.2 5 d46520exv12w2.htm STATEMENT REGARDING COMPUTATION OF EARNINGS TO FIXED CHARGES 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.
                                                         
               
    YEARS ENDED DECEMBER 31,     MARCH 31,  
(dollars in thousands)   2002     2003     2004     2005     2006     2007     2006  
Net income (loss)
   $ (24,958 )   $ (22,168 )   $ 24,219     $ 47,470     $ 45,232       16,024       3,363  
Income tax (benefit) expense
     (12,434 )     (12,338 )     11,764       35,488       35,753       7,164       1,458  
Fixed charges
     139,376       126,245       116,409       137,889       171,686       47,372       39,018  
 
                                          
Earnings
     101,984       91,739       152,392       220,847       252,671       70,560       43,839  
 
                                          
Interest expense, net
     94,061       77,350       64,425       80,345       109,806       30,755       23,629  
Rent 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
     0       0       0       0       0       0       0  
 
                                          
Fixed charges
     139,376       126,245       116,409       137,889       171,686       47,372       39,018  
 
                                          
Ratio of earnings to fixed charges(2)
     0.7x       0.7x       1.3x       1.6x       1.5x       1.5x       1.1x  
 
                                          
 
(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 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, 2002 and 2003, earnings were insufficient to cover fixed charges by $37.4 million and $34.5 million, respectively.