EX-12.1 6 d56568laexv12w1.txt EX-12.1 COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES EXHIBIT 12.1 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 indicated.
TWELVE MONTHS SIX MONTHS ENDED ENDED YEARS ENDED DECEMBER 31, JUNE 30, JUNE 30, ------------------------------------------------------------- --------------------- --------- (dollars in thousands) 2000 2001 2002 2003 2004 2004 2005 2005 ---------------------- --------- --------- --------- --------- --------- --------- --------- --------- Net (loss) income $ (91,930) $ (97,566) $ (24,958) $ (22,168) $ 24,219 $ 7,412 $ 27,577 $ 44,384 Income tax (benefit) expense (35,879) (38,870) (12,434) (12,338) 11,764 5,277 19,384 25,872 Fixed charges 187,345 156,808 140,305 126,747 116,904 56,938 65,286 125,253 --------- --------- --------- --------- --------- --------- --------- --------- Earnings 59,586 20,372 102,913 92,241 152,887 69,627 112,248 195,509 --------- --------- --------- --------- --------- --------- --------- --------- Interest expense, net 150,460 114,590 94,061 77,350 64,425 31,335 36,324 69,414 Rents under leases representative of an interest factor (1/3) Preferred dividends 35,220 41,578 45,315 48,895 51,984 25,482 28,246 54,749 --------- --------- --------- --------- --------- --------- --------- --------- Fixed charges 185,680 156,168 139,376 126,245 116,409 56,817 64,570 124,163 --------- --------- --------- --------- --------- --------- --------- --------- Ratio of earnings to fixed charges(2) 0.3x 0.1x 0.7x 0.7x 1.3x 1.2x 1.7x 1.6x ========= ========= ========= ========= ========= ========= ========= =========
---------- (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, 2000, 2001, 2002 and 2003, earnings were insufficient to cover fixed charges by $126.1 million, $135.8 million, $36.5 million and $34.0 million, respectively.