EX-12.(B) 4 d54259exv12wxby.htm STATEMENT REGARDING COMPUTATION OF EARNINGS TO FIXED CHARGES FOR LAMAR MEDIA exv12wxby
 

Exhibit 12(b)
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 indicted.
                                               
       
    YEARS ENDED DECEMBER 31,  
(dollars in thousands)   2002     2003     2004     2005     2006   2007  
Net income (loss)
   $ (24,958 )   $ (22,168 )   $ 24,219     $ 47,470     $ 45,232   $ 47,001  
Income tax (benefit) expense
     (12,434 )     (12,338 )     11,764       35,488       35,753     38,198  
Fixed charges
     139,376       126,245       116,409       137,889       171,686     224,932  
 
                                  
Earnings
     101,984       91,739       152,392       220,847       252,671     310,131  
 
                                  
Interest expense, net
     94,061       77,350       64,425       80,345       109,806     158,609  
Rent under leases representative of an interest factor (1/3)
     45,315       48,895       51,984       57,544       61,880     66,323  
Preferred dividends
     0       0       0       0       0     0  
 
                                  
Fixed charges
     139,376       126,245       116,409       137,889       171,686     224,932  
 
                                  
Ratio of earnings to fixed charges(2)
     0.7x       0.7x       1.3x       1.6x       1.5x     1.4x  
 
                                  
 
(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.