EX-12.2 3 d74421exv12w2.htm EX-12.2 exv12w2
Exhibit 12.2
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 indicted.
                                                         
    YEARS ENDED DECEMBER 31,     JUNE 30,  
(dollars in thousands)   2005     2006     2007     2008     2009(2)     2010(2)     2009(2)  
Net income (loss)
   $ 47,470     $ 43,279     $ 45,551     $ 10,360     $ (55,823 )   $ (33,708 )   $ (32,353 )
Income tax expense (benefit)
     35,488       34,520       37,283       14,487       (36,146 )     (19,289 )     (17,213 )
Fixed charges
     137,889       171,686       224,932       230,078       263,011       129,914       124,398  
 
                                          
Earnings
     220,847       249,485       307,766       254,925       171,042       76,917       74,832  
 
                                          
Interest expense, net
     80,345       109,806       158,609       156,716       191,455       95,705       87,899  
Rent under leases representative of an interest factor (1/3)
     57,544       61,880       66,323       73,362       71,556       34,209       36,499  
Preferred dividends
     0       0       0       0       0       0       0  
 
                                          
Fixed Charges
     137,889       171,686       224,932       230,078       263,011       129,914       124,398  
 
                                          
Ratio of earnings to fixed charges
     1.6 x      1.5 x      1.4 x      1.1 x      0.7 x      0.6 x      0.6 x 
 
                                          
 
(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, 2009 and the six months ended June 30, 2010 and 2009, earnings were insufficient to cover fixed charges by $92.0 million, $53.0 million and $49.6 million, respectively.