Lamar Advertising (LAMR) 10-Q 2014 Q1 Quarterly report

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,												MARCH 31,
(dollars in thousands)	2009(2)			2010(2)			2011		2012		2013		2014(2)			2013(2)
Net income (loss)	$	(56,383	)	$	(39,066	)	$	6,920	$	8,115	$	40,338	$	(4,778	)	$	(10,212	)
Income tax expense (benefit)		(36,504	)		(22,490	)		5,838		8,353		22,977		(3,444	)		(7,312	)
Fixed charges		263,011			253,569			239,477		227,155		221,219		49,044			55,294
Earnings		170,124			192,013			252,235		243,623		284,534		40,822			37,770
Interest expense, net		191,455			185,517			170,524		156,762		146,112		30,223			36,672
Rent under leases representative of an interest factor (1/3)		71,556			68,052			68,953		70,393		75,107		18,821			18,622
Preferred dividends		0			0			0		0		0		0			0
Fixed charges		263,011			253,569			239,477		227,155		221,219		49,044			55,294
Ratio of earnings to fixed charges		0.6x			0.8x			1.1x		1.1x		1.3x		0.8x			0.7x

(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 years ended December 31, 2010 and 2009 and the three months ended March 31, 2014 and 2013, earnings were insufficient to cover fixed charges by $61.6 million and $92.9 million and $8.2 million and $17.5 million, respectively.