EX-12.A 9 d651857dex12a.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)

    2009(2)     2010(2)     2011      2012      2013  

Net income (loss)

    $ (58,598 )    $ (38,970 )    $ 6,858       $ 7,890       $ 40,139   

Income tax expense (benefit)

      (36,459 )      (22,746 )      5,542         8,242         22,841   

Fixed charges

      268,441        254,098        239,842         227,520         221,584   
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

Earnings

      173,384        192,382        252,242         243,652         284,564   
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

Interest expense, net

      196,520        185,681        170,524         156,762         146,112   

Rents under leases representative of an interest factor

      71,556        68,052        68,953         70,393         75,107   

Preferred dividends

      365        365        365         365         365   
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

Fixed charges

      268,441        254,098        239,842         227,520         221,584   
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

Ratio of earnings to fixed charges

      0.6x        0.8x        1.1x         1.1x         1.3x   
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

 

(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 $61.7 million and $95.1 million, respectively.