EX-12.(A) 2 d737965dex12a.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 Media’s ratio of earnings to fixed charges for the periods indicated.

 

     Year Ended December 31,      Six Months Ended
June 30,		  
     2009(2)     2010(2)     2011      2012      2013      2013      2014  

(dollars in thousands)

                                     (unaudited)  

Net income (loss)

    $ (56,383 )    $ (39,066 )    $ 6,920       $ 8,115       $ 40,338       $ 12,966       $ 10,702   

Income tax expense (benefit)

      (36,504 )      (22,490 )      5,838         8,353         22,977         5,079         7,317   

Fixed charges

      263,011        253,569        239,477         227,155         221,219         111,593         94,239   
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Earnings

      170,124        192,013        252,235         243,623         284,534         129,638         112,258   
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Interest expense, net

      191,455        185,517        170,524         156,762         146,112         74,508         56,266   

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

      71,556        68,052        68,953         70,393         75,107         37,085         37,973   

Preferred dividends

      0        0        0         0         0         0         0   
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Fixed charges

      263,011        253,569        239,477         227,155         221,219         111,593         94,239   
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Ratio of earnings to fixed charges

      0.6x        0.8x        1.1x         1.1x         1.3x         1.2x         1.2x   
  

 

 

    

 

 

    

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

(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 $61.6 million and $92.9 million, respectively.