EX-12.A 2 d599934dex12a.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,      Nine Months Ended
September 30,		  

(dollars in thousands)

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

Net income (loss)

    $ 2,162       $ (58,038 )    $ (40,102 )    $ 8,550       $ 9,821       $ 33,525       $ 2,602   

Income tax expense (benefit)

      9,349         (36,101 )      (23,469 )      6,623         9,476         19,790         2,403   

Fixed charges

      242,877         268,441        254,098        239,842         227,520         168,450         169,484   
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Earnings

      254,388         174,302        190,527        255,015         246,817         221,765         174,489   
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Interest expense, net

      169,150         196,520        185,681        170,524         156,762         112,143         116,811   

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

      73,362         71,556        68,052        68,953         70,393         56,034         52,400   

Preferred dividends

      365         365        365        365         365         273         273   
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Fixed charges

      242,877         268,441        254,098        239,842         227,520         168,450         169,484   
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Ratio of earnings to fixed charges

      1.0x         0.6x        0.7x        1.1x         1.1x         1.3x         1.0x   
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

 

(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.