EX-12.1 2 d68611exv12w1.htm EX-12.1 exv12w1
Exhibit 12.1
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,     June 30,  
(dollars in thousands)   2004     2005     2006     2007(2)     2008(2)     2009(3)     2008(2)  
Net income (loss)
   $ 13,155     $ 41,779     $ 43,899     $ 42,432     $ 2,839     $ (33,152 )   $ 9,433  
Income tax expense (benefit)
     11,305       31,899       34,227       34,816       9,776       (17,392 )     10,015  
Fixed charges
     127,933       147,069       173,889       232,690       242,877       129,362       120,367  
 
                                          
Earnings
     152,393       220,747       252,015       309,938       255,492       78.818       139,815  
 
                                          
Interest expense, Net
     75,584       89,160       111,644       166,002       169,150       92,681       84,745  
Rents under leases representative of an interest factor (1/3)
     51,984       57,544       61,880       66,323       73,362       36,499       35,440  
Preferred dividends
     365       365       365       365       365       182       182  
 
                                          
Fixed Charges
     127,933       147,069       173,889       232,690       242,877       129,362       120,367  
 
                                          
Ratio of earnings to fixed charges
     1.2x       1.5x       1.5x       1.3x       1.1x       0.6x       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 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, 2007 and 2008 and six months ended June 30, 2008 amounts were adjusted to reflect the adoption of FSP APB 14—1 “Accounting for Convertible Debt that may be settled in cash upon conversion (including partial cash settlement)”.
 
(3)   For the six months ended June 30, 2009, earnings were insufficient to cover fixed charges by $50.5 million.