EX-12.A 18 d446463dex12a.htm EX-12.A EX-12.A

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)

    2007      2008      2009(2)     2010(2)     2011      2012  

Net income (loss)

    $ 40,982       $ 2,162       $ (58,038 )    $ (40,102 )    $ 8,550       $ 9,821   

Income tax expense (benefit)

      33,901         9,349         (36,101 )      (23,469 )      6,623         9,476   

Fixed charges

      232,691         242,877         268,441        254,098        239,842         227,520   
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Earnings

      307,574         254,388         174,302        190,527        255,015         246,817   
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Interest expense, net

      166,003         169,150         196,520        185,681        170,524         156,762   

Rents under leases representative of an interest factor

      66,323         73,362         71,556        68,052        68,953         70,393   

Preferred dividends

      365         365         365        365        365         365   
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Fixed charges

      232,691         242,877         268,441        254,098        239,842         227,520   
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

     

 

 

  

Ratio of earnings to fixed charges

      1.3x         1.0x         0.6x        0.7x        1.1x         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 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.