EX-12.(A) 22 d263372dex12a.htm STATEMENT REGARDING COMPUTATION OF EARNINGS TO FIXED CHARGES FOR THE COMPANY Statement regarding computation of earnings to fixed charges for the Company

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)

    2006     2007     2008     2009(2)     2010(2)     2011  

Net income (loss)

    $ 41,946      $ 40,982      $ 2,162      $ (58,038 )    $ (40,102 )    $ 8,550   

Income tax expense (benefit)

      32,994        33,901        9,349        (36,101 )      (23,469 )      6,623   

Fixed charges

      173,889        232,691        242,877        268,441        254,098        239,842   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings

      248,829        307,574        254,388        174,302        190,527        255,015   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Interest expense, net

      111,644        166,003        169,150        196,520        185,681        170,524   

Rents under leases representative of an interest factor

      61,880        66,323        73,362        71,556        68,052        68,953   

Preferred dividends

      365        365        365        365        365        365   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed charges

      173,889        232,691        242,877        268,441        254,098        239,842   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of earnings to fixed charges

      1.4 x      1.3 x      1.0 x      0.6 x      0.7 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 years ended December 31, 2010 and 2009, earnings were insufficient to cover fixed charges by $63.6 million and $94.1 million, respectively.