EX-12.B 12 lamr-ex12b_13.htm EX-12.B lamr-ex12b_13.htm

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,

 

(dollars in thousands)

 

2013

 

 

2014

 

 

2015

 

 

2016

 

 

2017

 

Net income

 

$

40,338

 

 

$

287,035

 

 

$

262,903

 

 

$

299,181

 

 

$

318,058

 

Income tax expense (benefit)

 

 

22,977

 

 

 

(143,264

)

 

 

22,058

 

 

 

13,356

 

 

 

9,230

 

Fixed charges

 

 

221,219

 

 

 

182,107

 

 

 

179,516

 

 

 

213,455

 

 

 

221,069

 

Earnings

 

$

284,534

 

 

$

325,878

 

 

$

464,477

 

 

$

525,992

 

 

$

548,357

 

Interest expense, net

 

 

146,112

 

 

 

105,152

 

 

 

98,399

 

 

 

123,682

 

 

 

128,390

 

Rent under leases representative of an interest factor

 

 

75,107

 

 

 

76,955

 

 

 

81,117

 

 

 

89,773

 

 

 

92,679

 

Preferred dividends

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Fixed charges

 

$

221,219

 

 

$

182,107

 

 

$

179,516

 

 

$

213,455

 

 

$

221,069

 

Ratio of earnings to fixed charges

 

1.3x

 

 

1.8x

 

 

2.6x

 

 

2.5x

 

 

2.5x

 

 

(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 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.