Lamar Advertising (LAMR) 10-Q 2014 Q3 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,												Nine Months Ended September 30,
(dollars in thousands)	2009(2)			2010(2)			2011		2012		2013		2014		2013
Net income (loss)	$	(56,383	)	$	(39,066	)	$	6,920	$	8,115	$	40,338	$	45,805	$	30,110
Income tax expense (benefit)		(36,504	)		(22,490	)		5,838		8,353		22,977		33,903		17,609
Fixed charges		263,011			253,569			239,477		227,155		221,219		138,043		168,177
Earnings		170,124			192,013			252,235		243,623		284,534		217,751		215,896
Interest expense, net		191,455			185,517			170,524		156,762		146,112		80,673		112,143
Rent under leases representative of an interest factor (1/3)		71,556			68,052			68,953		70,393		75,107		57,370		56,034
Preferred dividends		0			0			0		0		0		0		0
Fixed charges		263,011			253,569			239,477		227,155		221,219		138,043		168,177
Ratio of earnings to fixed charges		0.6x			0.8x			1.1x		1.1x		1.3x		1.6x		1.3x

⁽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, earnings were insufficient to cover fixed charges by $61.6 million $92.9 million, respectively.