EX-12.2 7 d56568laexv12w2.txt EX-12.2 COMPUTATION OF RATIO OF EBITDA TO NET INTEREST EXPENSES EXHIBIT 12.2 COMPUTATION OF RATIO OF EBITDA TO NET INTEREST EXPENSE(1) The following table sets forth Lamar Media's ratio of EBITDA to net expense interest 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 ---------------------- -------- -------- -------- -------- -------- -------- -------- -------- EBITDA(2) $333,548 $327,704 $328,501 $287,551 $394,464 $186,737 $224,440 $432,167 Interest expense, net 150,460 114,590 94,061 77,350 64,425 31,335 36,324 69,414 Ratio of EBITDA to net expense interest 2.2 2.9 3.5 3.7 6.1 6.0 6.2 6.2 ======== ======== ======== ======== ======== ======== ======== ========
---------- (1) The ratio of EBITDA to net interest expense is defined as EBITDA divided by net interest expense. (2) EBITDA is defined as earnings (loss) before interest, taxes, depreciation and amortization. For the fiscal years ended 2002 and 2003, EBITDA includes $5.9 million and $21.1 million in loss on debt extinguishment, respectively, and EBITDA for the year ended 2003 also includes a cumulative effect of a change in accounting principle of $40.2 million. EBITDA represents a measure that we believe is customarily used to evaluate the financial performance of companies in the media industry. Our management also believes that EBITDA is useful in evaluating our core operating results. However, EBITDA is not a measure of financial performance under accounting principles generally accepted in the United States of America and should not be considered an alternative to operating income or net income as an indicator of our operating performance or to net cash provided by operating activities as a measure of our liquidity. Because EBITDA is not calculated identically by all companies, the presentation in this prospectus may not be comparable to those disclosed by other companies. In addition, the definition of EBITDA differs from the definition of EBITDA applicable to the covenants for the notes. Please refer to the reconciliation of EBITDA to net income (loss) on page 11 of the prospectus.