Lamar Advertising (LAMR) 10-K 2017 FY Annual 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,
(dollars in thousands)	2013		2014			2015		2016		2017
Net income	$	40,338	$	287,035		$	262,903	$	299,181	$	318,058
Income tax expense (benefit)		22,977		(143,264	)		22,058		13,356		9,230
Fixed charges		221,219		182,107			179,516		213,455		221,069
Earnings	$	284,534	$	325,878		$	464,477	$	525,992	$	548,357
Interest expense, net		146,112		105,152			98,399		123,682		128,390
Rent under leases representative of an interest factor		75,107		76,955			81,117		89,773		92,679
Preferred dividends		—		—			—		—		—
Fixed charges	$	221,219	$	182,107		$	179,516	$	213,455	$	221,069
Ratio of earnings to fixed charges	1.3x		1.8x			2.6x		2.5x		2.5x

⁽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 expenses, preferred stock dividends and the component of rental expense that we believe to be representative of the interest factor for those amounts.