EX-12.B 7 d565771dex12b.htm EX-12.B EX-12.b

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,     Six Months Ended
June 30,		  

(dollars in thousands)

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

Net income (loss)

    $ 10,360      $ (55,823 )    $ (40,198 )    $ 8,612      $ 10,046      $ 15,292      $ (8,833 ) 

Income tax expense (benefit)

      14,487        (36,146 )      (23,213 )      6,919        9,587        6,567        (9,114 ) 

Fixed charges

      230,078        263,011        253,569        239,477        227,155        111,593        113,530   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings

      254,925        171,042        190,158        255,008        246,788        133,452        95,583   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Interest expense, net

      156,716        191,455        185,517        170,524        156,762        74,508        78,424   

Rent 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

      0        0        0        0        0        0        0   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed charges

      230,078        263,011        253,569        239,477        227,155        111,593        113,530   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of earnings to fixed charges

      1.1 x      0.7 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 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 and the six months ended June 30, 2012, earnings were insufficient to cover fixed charges by $63.4 million and $92.0 million and $17.9 million, respectively.