EX-12.(A) 4 d322896dex12a.htm STATEMENT REGARDING COMPUTATION OF EARNINGS TO FIXED CHARGES FOR LAMAR MEDIA Statement regarding computation of earnings to fixed charges for Lamar Media

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,      Three Months Ended
March 31,		  
     2007      2008      2009(2)     2010     2011      2011(2)     2012(2)  

(dollars in thousands)

                                     (unaudited)  

Net income (loss)

    $ 45,551       $ 10,360       $ (55,823 )    $ (40,198 )    $ 8,612       $ (13,164 )    $ (22,825 ) 

Income tax expense (benefit)

      37,283         14,487         (36,146 )      (23,213 )      6,919         (4,745 )      (21,117 ) 

Fixed charges

      224,932         230,078         263,011        253,569        239,477         60,992        57,529   
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Earnings

      307,766         254,925         171,042        190,158        255,008         43,083        13,587   
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Interest expense, net

      158,609         156,716         191,455        185,517        170,524         43,588        39,856   

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

      66,323         73,362         71,556        68,052        68,953         17,404        17,673   

Preferred dividends

      0         0         0        0        0         0        0   
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Fixed Charges

      224,932         230,078         263,011        253,569        239,477         60,992        57,529   
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Ratio of earnings to fixed charges

      1.4x         1.1x         0.7x        0.7x        1.1x         0.7 x        0.2x   
  

 

 

     

 

 

     

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

 

(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 year ended December 31, 2010 and 2009 and the three months ended March 31, 2012 and 2011, earnings were insufficient to cover fixed charges by $63.4 million and $92.0 million and $43.9 million and $17.9 million, respectively.