EX-12.B 3 lamr-ex12b_10.htm EX-12.B lamr-ex12b_10.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,

 

 

Nine Months Ended

September 30,

 

(dollars in thousands)

 

2011

 

 

2012

 

 

2013

 

 

2014

 

 

2015

 

 

2016

 

 

2015

 

Net income

 

$

6,920

 

 

$

8,115

 

 

$

40,338

 

 

$

287,035

 

 

$

262,903

 

 

$

218,573

 

 

$

186,296

 

Income tax expense (benefit)

 

 

5,838

 

 

 

8,353

 

 

 

22,977

 

 

 

(143,264

)

 

 

22,058

 

 

 

9,730

 

 

 

18,278

 

Fixed charges

 

 

239,477

 

 

 

227,155

 

 

 

221,219

 

 

 

182,107

 

 

 

179,516

 

 

 

159,245

 

 

 

134,109

 

Earnings

 

 

252,235

 

 

 

243,623

 

 

 

284,534

 

 

 

325,878

 

 

 

464,477

 

 

 

387,548

 

 

 

338,683

 

Interest expense, net

 

 

170,524

 

 

 

156,762

 

 

 

146,112

 

 

 

105,152

 

 

 

98,399

 

 

 

92,463

 

 

 

73,925

 

Rent under leases representative of an interest

   factor (1/3)

 

 

68,953

 

 

 

70,393

 

 

 

75,107

 

 

 

76,955

 

 

 

81,117

 

 

 

66,782

 

 

 

60,184

 

Preferred dividends

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Fixed charges

 

 

239,477

 

 

 

227,155

 

 

 

221,219

 

 

 

182,107

 

 

 

179,516

 

 

 

159,245

 

 

 

134,109

 

Ratio of earnings to fixed charges

 

1.1x

 

 

1.1x

 

 

1.3x

 

 

1.8x

 

 

2.6x

 

 

2.4x

 

 

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 expense, preferred stock dividends and the component of rental expense that we believe to be representative of the interest factor for those amounts.