EX-12.A 6 d565771dex12a.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,     Six Months Ended
June 30,		  

(dollars in thousands)

    2008     2009(2)     2010(2)     2011     2012     2013     2012(2)  

Net income (loss)

    $ 2,162      $ (58,038 )    $ (40,102 )    $ 8,550      $ 9,821      $ 15,185      $ (8,894 ) 

Income tax expense (benefit)

      9,349        (36,101 )      (23,469 )      6,623        9,476        6,493        (9,252 ) 

Fixed charges

      242,877        268,441        254,098        239,842        227,520        111,775        113,712   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings

      254,388        174,302        190,527        255,015        246,817        133,453        95,566   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Interest expense, net

      169,150        196,520        185,681        170,524        156,762        74,508        78,424   

Rents under leases representative of an interest factor (1/3)

      73,362        71,556        68,052        68,953        70,393        37,085        35,106   

Preferred dividends

      365        365        365        365        365        182        182   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed charges

      242,877        268,441        254,098        239,842        227,520        111,775        113,712   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of earnings to fixed charges

      1.0 x      0.6 x      0.7 x      1.1 x      1.1 x      1.2 x      0.8 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 and the six months ended June 30, 2012, earnings were insufficient to cover fixed charges by $63.6 million and $94.1 million and $18.1 million, respectively.