EX-12.(B) 23 d263372dex12b.htm STATEMENT REGARDING COMPUTATION OF EARNINGS TO FIXED CHARGES FOR LAMAR MEDIA Statement regarding computation of earnings to fixed charges for Lamar Media

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 indicated.

 

     YEARS ENDED DECEMBER 31,  

(dollars in thousands)

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

Net income (loss)

    $ 43,279      $ 45,551      $ 10,360      $ (55,823 )    $ (40,198 )    $ 8,612   

Income tax expense (benefit)

      34,520        37,283        14,487        (36,146 )      (23,213 )      6,919   

Fixed charges

      171,686        224,932        230,078        263,011        253,569        239,477   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings

      249,485        307,766        254,925        171,042        190,158        255,008   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Interest expense, net

      109,806        158,609        156,716        191,455        185,517        170,524   

Rent under leases representative of an interest factor

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

Preferred dividends

      0        0        0        0        0        0   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed charges

      171,686        224,932        230,078        263,011        253,569        239,477   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of earnings to fixed charges

      1.5 x      1.4 x      1.1 x      0.7 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 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 years ended December 31, 2010 and 2009, earnings were insufficient to cover fixed charges by $63.4 million and $92.0 million, respectively.