Lamar Advertising (LAMR) 10-Q 2015 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)	2010(2)			2011		2012		2013		2014			2015		2014(2)
Net (loss) income	$	(39,066	)	$	6,920	$	8,115	$	40,338	$	287,035		$	40,804	$	(4,778	)
Income tax (benefit) expense		(22,490	)		5,838		8,353		22,977		(143,264	)		2,008		(3,444	)
Fixed charges		253,569			239,477		227,155		221,219		182,107			44,115		49,044
Earnings		192,013			252,235		243,623		284,534		325,878			86,927		40,822
Interest expense, net		185,517			170,524		156,762		146,112		105,152			24,530		30,223
Rent under leases representative of an interest factor (1/3)		68,052			68,953		70,393		75,107		76,955			19,585		18,821
Preferred dividends		0			0		0		0		0			0		0
Fixed charges		253,569			239,477		227,155		221,219		182,107			44,115		49,044
Ratio of earnings to fixed charges		0.8x			1.1x		1.1x		1.3x		1.8x			2.0x		0.8x

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