EX-12.(B) 4 d66537exv12wxby.htm EX-12.(B) 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)   2003     2004     2005     2006     2007   2008  
Net (loss) income
  $ (22,168 )   $ 24,219     $ 47,470     $ 45,232   $ 47,001 11,037
Income tax (benefit) expense
    (12,338 )     11,764       35,488       35,753     38,198 14,914
Fixed charges
    126,245       116,409       137,889       171,686     224,932 230,078
 
                               
Earnings
    91,739       152,392       220,847       252,671     310,131 256,029
 
                             
Interest expense, net
    77,350       64,425       80,345       109,806     158,609 156,716
Rent under leases representative of an interest factor
    48,895       51,984       57,544       61,880     66,323 73,362
Preferred dividends
    0       0       0       0     0 0
 
                             
Fixed charges
    126,245       116,409       137,889       171,686     224,932 230,078
 
                             
Ratio of earnings to fixed charges(2)
    0.7x       1.3x       1.6x       1.5x     1.4x 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 year ended December 31, 2003, earnings were insufficient to cover fixed charges by $34.5 million.