Lamar Advertising (LAMR) 10-Q 2017 Q2 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,											Six Months Ended June 30,
(dollars in thousands)	2012		2013		2014			2015		2016		2017		2016
Net income	$	8,115	$	40,338	$	287,035		$	262,903	$	299,181	$	134,372	$	133,405
Income tax expense (benefit)		8,353		22,977		(143,264	)		22,058		13,356		5,932		6,117
Fixed charges		227,155		221,219		182,107			179,516		213,455		109,179		105,514
Earnings		243,623		284,534		325,878			464,477		525,992		249,483		245,036
Interest expense, net		156,762		146,112		105,152			98,399		123,682		63,458		61,363
Rent under leases representative of an interest    factor (1/3)		70,393		75,107		76,955			81,117		89,773		45,721		44,151
Preferred dividends		—		—		—			—		—		—		—
Fixed charges		227,155		221,219		182,107			179,516		213,455		109,179		105,514
Ratio of earnings to fixed charges	1.1x		1.3x		1.8x			2.6x		2.5x		2.3x		2.3x

(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 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.