EX-12.B 3 d599934dex12b.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,      Nine Months Ended
September 30,		  

(dollars in thousands)

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

Net income (loss)

    $ 10,360       $ (55,823 )    $ (40,198 )    $ 8,612       $ 10,046       $ 33,682       $ 2,752   

Income tax expense (benefit)

      14,487         (36,146 )      (23,213 )      6,919         9,587         19,894         2,526   

Fixed charges

      230,078         263,011        253,569        239,477         227,155         168,177         169,211   
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Earnings

      254,925         171,042        190,158        255,008         246,788         221,753         174,489   
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Interest expense, net

      156,716         191,455        185,517        170,524         156,762         112,143         116,811   

Rent 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

      0         0        0        0         0         0         0   
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Fixed charges

      230,078         263,011        253,569        239,477         227,155         168,177         169,211   
  

 

 

     

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Ratio of earnings to fixed charges

      1.1x         0.7x        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 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 $92.0 million, respectively.