EX-12.(A) 3 d66537exv12wxay.htm EX-12.(A) exv12wxay
Exhibit 12(a)
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,  
(dollars in thousands)   2003   2004   2005   2006   2007   2008  
Net (loss) income
  (39,755 ) 13,155   41,779   43,899   46,217   9,723
 
               
Income tax (benefit) expense
  (23,573 ) 11,305   31,899   34,227   37,185   14,086
Fixed charges
  142,545   127,933   147,069   173,889   226,537   231,683
                           
 
                 
Earnings
  79,217   152,393   220,747   252,015   309,939   255,492
                           
 
               
Interest expense, net
  93,285   75,584   89,160   111,644   159,849   157,956
 
               
Rents under leases representative of an interest factor
  48,895   51,984   57,544   61,880   66,323   73,362
Preferred dividends
  365   365   365   365   365   365
                           
 
       
Fixed charges
  142,545   127,933   147,069   173,889   226,537   231,683  
                           
 
               
Ratio of earnings to fixed charges(2)
  0.6 x 1.2 x 1.5 x 1.5 x 1.4 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 year ended December 31, 2003, earnings were insufficient to cover fixed charges by $63.3 million.