Carriage Services (CSV) 10-K 2005 FY Annual report

EXHIBIT 12

CARRIAGE SERVICES, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(unaudited and in thousands)

	2001		2002		2003		2004		2005
Fixed charges:
Interest expense	$	19,372	$	18,336	$	16,946	$	16,103	$	24,890
Amortization of capitalized expenses related to debt		894		1,343		954		924		754
Rental expense factor		1,516		1,529		1,221		1,208		1,268
Total fixed charges before capitalized interest and preferred stock dividends		21,782		21,208		19,121		18,235		26,912
Capitalized interest		298		184		131		24		46
Total fixed charges		22,080		21,392		19,252		18,259		26,958
Preferred stock dividends		46		—		—		—		—
Total fixed charges plus preferred dividends	$	22,126	$	21,392	$	19,252	$	18,259	$	26,958
Earnings available for fixed charges:
Earnings (loss) before income taxes and cumulative effect of change in accounting principle	$	9,894	$	11,230	$	9,438	$	11,079	$	(13	)
Add fixed charges before capitalized interest and preferred stock dividends		21,782		21,208		19,121		18,235		26,912
Total earnings available for fixed charges	$	31,676	$	32,438	$	28,559	$	29,314	$	26,899
Ratio of earnings to fixed charges (1)		1.44		1.52		1.48		1.61		1.00
Ratio of earnings to fixed charges plus dividends (1)		1.43		1.52		1.48		1.61		1.00

(1)  For purposes of computing the ratios of earnings to fixed charges and earnings to fixed charges plus dividends: (i) earnings consist of income from continuing operations before provision for income taxes plus fixed charges (excluding capitalized interest) and (ii) “fixed charges” consist of interest expensed and capitalized, amortization of debt discount and expense relating to indebtedness and the portion of rental expense representative of the interest factor attributable to leases for rental property. There were no dividends paid or accrued on the Company’s Common Stock during the periods presented above.